American Mills Scramble to Replace Acrilan®
February 16, 2005
ST. LOUIS, Missouri — Several American upholstery mills are scrambling to find new sources of acrylic fiber to replace the loss of Solutia's Acrilan® brand.
Solutia Inc. expects to exit the acrylic fibers business, pending approval by the U.S. Bankruptcy Court. Lonfil of Italy and other suppliers based in Italy and Turkey are expected to make up the gap in the American supply. In some cases, mills need 250 colors of yarn to produce their running upholstery lines when a supplier can only produce 50 different colors.
Quaker Fabrics has a huge void to fill in its upholstery business with the loss of Acxrilan® but a company executive says the new sources of supply have already been lined up. Michael Shelton, president of Valdese Weavers also says his mill has found new sources of acrylic fiber supply to insure the continuation of its chenille fabric lines.
''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," says Jeffrey N. Quinn, president and CEO of Solutia Inc.
"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 company's plant in Decatur, Alabama will continue to operate as a producer of chemical intermediates for use in nylon products, but expects to close its acrylic fiber operation in early-to-mid April. This action will impact approximately 250 Solutia employees and 200 contractors, most of whom work at the Decatur plant.
''Despite the tremendous efforts of those within our acrylic business to reduce costs and improve productivity, the business has simply been unable to compete as fiber and textile manufacturing has moved outside the United States,'' said John Saucier, president of Solutia's Integrated Nylon platform.
Solutia Inc. expects to exit the acrylic fibers business, pending approval by the U.S. Bankruptcy Court. Lonfil of Italy and other suppliers based in Italy and Turkey are expected to make up the gap in the American supply. In some cases, mills need 250 colors of yarn to produce their running upholstery lines when a supplier can only produce 50 different colors.
Quaker Fabrics has a huge void to fill in its upholstery business with the loss of Acxrilan® but a company executive says the new sources of supply have already been lined up. Michael Shelton, president of Valdese Weavers also says his mill has found new sources of acrylic fiber supply to insure the continuation of its chenille fabric lines.
''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," says Jeffrey N. Quinn, president and CEO of Solutia Inc.
"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 company's plant in Decatur, Alabama will continue to operate as a producer of chemical intermediates for use in nylon products, but expects to close its acrylic fiber operation in early-to-mid April. This action will impact approximately 250 Solutia employees and 200 contractors, most of whom work at the Decatur plant.
''Despite the tremendous efforts of those within our acrylic business to reduce costs and improve productivity, the business has simply been unable to compete as fiber and textile manufacturing has moved outside the United States,'' said John Saucier, president of Solutia's Integrated Nylon platform.
