Solutia to shut down Welsh facility
Wednesday May 21, 1:05 pm ET
Solutia to end production at facility in Wales, eliminate product lines
ST. LOUIS (AP) -- Solutia Inc., which makes synthetic fluids, said Wednesday that its Flexsys subsidiary plans to shut down a facility in Wales, blaming increasing competition from Asia.
Solutia said it plans to end manufacturing at its facility in Ruabon, Wales, by the end of 2008 and completely exit the site by the end of 2011.
"This action is part of our strategy to strengthen the profitable, market-leading positions that Flexsys holds across most of its portfolio, while taking steps to limit our exposure in smaller product lines where Flexsys is no longer cost competitive," Jim Voss, president of Flexsys, said in a statement.
Voss said the Ruabon site makes three product lines for which the market is oversupplied because of increasing competition from Asia. As a result, those lines are no longer cost competitive, Voss said.
The product lines include Santogard PVI pre-vulcanization inhibitors, Perkacit DPG, which is used as a secondary accelerator in the rubber vulcanization process, and Flectol TMQ and Flectol HPG, which protect against oxidative aging, Solutia said.
Solutia shares rose 62 cents, or 4.7 percent, to $13.92 in midday trading.
Source: Associated Press
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