INVISTA plans to explore strategic alternatives for its nylon fibers business

Daily State News
Posted 4/14/24

SEAFORD – The future of the former DuPont nylon production plant that put Seaford on the worldwide map may be in limbo.

INVISTA, a subsidiary of Koch Industries since 2004, announced in an …

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INVISTA plans to explore strategic alternatives for its nylon fibers business

Posted

SEAFORD — The future of the former DuPont nylon production plant that put Seaford on the worldwide map may be in limbo.

INVISTA, a subsidiary of Koch Industries since 2004, announced in an April 9 press release its “intent to explore strategic alternatives for its nylon fibers business.”

This includes potentially selling the business portfolio and INVISTA’s five global manufacturing locations in Seaford; Martinsville, Virginia; Kingston, Ontario Canada; Gloucester, United Kingdom; and Qingpu, China.

In the release, INVISTA President and CEO Francis Murphy said, “consistent with our Principle Based Management business philosophy, INVISTA continuously assesses the external value of assets to make sure they are owned by the company best positioned to grow the business.”

“Nylon fibers is a great business, and we believe there are other companies with different focus and capabilities that could create even greater value with those assets. If, however, through this process, we find that other companies don’t value it more highly, we’ll continue to operate the business,” Mr. Murphy said.

The release further stated that regardless of a potential transaction to divest its nylon fibers business, INVISTA will continue supplying its global nylon and propylene value chain customers with intermediates, polymers and specialty chemicals. If INVISTA were to proceed, it would also result in a simplification and strengthened focus on its long-term competitive positions in the upstream nylon and propylene value chain businesses.

The nylon fiber assets are a major part of the current INVISTA footprint, and it would be premature to speculate on the final structure of a potential deal, the release stated. Details of the business and exploration process are confidential.

INVISTA has engaged Barclays as exclusive financial advisor during this exploration process.

The DuPont plant opened production in December of 1939 with about 850 workers, earning Seaford the title of “Nylon Capital of the World.

Employment at the Seaford plant peaked at about 4,600 in the 1970s. However, by 2004, the year DuPont sold the facility, employment had dropped to about 650.

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