Solutia to exit acrylic fibers business

By Ellen Chang

Houston, Jan. 25 - Solutia announced it will exit the acrylic fibers business.

The company's plant in Decatur, Ala. will continue to operate as a producer of chemical intermediates for use in nylon products, but will close its acrylic fiber operation in early-to-mid April. The action will affect 250 Solutia employees and 200 contractors, most of whom work at the Decatur plant.

"A key component of our reorganization strategy is to re-shape our asset portfolio so that it consists of high-potential businesses leveraged on Solutia's core competencies that can consistently deliver returns in excess of their cost of capital," said Jeffry N. Quinn, president and CEO of Solutia, in a press release.

"Exiting the acrylic fiber business, which in recent years has been rendered unprofitable due to low-cost foreign competition, declining global demand trends and sustained high raw material prices, is our most recent step forward in implementing this strategy."

The action is subject to bankruptcy court approval and is scheduled to be heard in the U.S. Bankruptcy Court for the Southern District of New York on Feb. 17.

The St. Louis-based chemical company filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.

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