13 February 2002
DuPont creates textile unit, realigns rest of company
DuPont Co. will create a new textiles and interiors subsidiary with the intent of spinning it off from the company. The Wilmington, Del.-based giant also plans to align its other businesses in five market- and technology-focused areas.
The new wholly owned subsidiary, DuPont Textiles & Interiors, would include the company's nylon, polyester fibers, and Lycra operations and would have annual sales of $6.5 billion.
The five other business units are DuPont Electronic & Communication Technologies; DuPont Performance Materials; DuPont Coatings & Color Technologies; DuPont Safety & Protection; and DuPont Agriculture & Nutrition.
"Consistent with our long-term strategy and direction, our growth platforms will be more tightly focused on markets and technologies," said Chad Holliday, DuPont CEO. "This will enable faster execution and improved capability for innovation and shareholder value creation," he said.
Holliday said DuPont will consider a full range of options for DuPont Textiles & Interiors, including an initial public offering, with the ultimate intent of separation by year-end 2003, market conditions permitting. The company has engaged Morgan Stanley to assist in the evaluation process.
DuPont executive vice president and COO Richard Goodmanson and group vice presidents Steve McCracken and George MacCormack will lead the Textiles & Interiors business.
As for the five growth platforms, the CEO said one priority will be to leverage across the platforms for better market access and technology extension.
The five growth platforms will report to John Hodgson, currently group vice president and just appointed executive vice president:
- DuPont Electronic & Communication Technologies. With about US$2.7 billion in segment sales, the group develops technologies to improve the form and functionality of electronic components in a wide range of applications for the information and communications industries.
- DuPont Performance Materials. With segment sales of about US$4.7 billion, the group focuses on high-performance materials substitution in areas.
- DuPont Coatings & Color Technologies. With segment sales of about US$4.9 billion, the group specializes in coatings and color products.
- DuPont Safety & Protection. With segment sales of about US$3.6 billion, the group addresses high growth opportunities, specializing in safety, security, and protection.
- DuPont Agriculture & Nutrition. With segment sales of about US$4.3 billion, the group will focus on crop protection chemicals, seeds, biotechnology, food ingredients, and safety for growers and the global food industry.
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