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April 05, 2005 02:00 AM

Solutia to consolidate nylon fiber output at S.C. plant

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    ST. LOUIS (April 5)—Solutia Inc. is concentrating U.S. production of nylon industrial fibers, used in tire reinforcement and automotive airbags, at its Greenwood, S.C., plant to cut costs and achieve higher quality.

    The process will involve phasing out production at a facility in Pensacola, Fla. Manufacturing should cease by the end of May, Solutia said, pending approval by the U.S. Bankruptcy Court, which is overseeing Solutia's Chapter 11 reorganization plan. The Pensacola factory will continue to make nylon plastics, nylon carpet fiber and chemical intermediates for use in nylon products.

    "A critical piece of Solutia's reorganization strategy is reshaping our asset portfolio so it consists of high-potential businesses that can consistently deliver returns in excess of their costs of capital," said Jeffry N. Quinn, president and CEO of Solutia.

    The Greenwood plant uses much newer technology than the Pensacola unit, Quinn said, enabling it to achieve lower costs and higher quality. In addition to nylon industrial fibers, the Greenwood facility produces nylon carpet fiber and nylon plastics.

    Solutia did not disclose capacities or costs associated with the change.

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