Invista has begun a review that could lead to the sale of its North American polymer and resin unit — including its PET business.
“Invista continually evaluates opportunities to maximize the long-term value of its businesses,” spokesperson Jodie Stutzman wrote in a July 26 e-mail. “Consistent with this approach, we are beginning a process to determine the market value of Invista’s polymer and resins businesses in North America.”
The company’s 180,000 tonne capacity PET plant at Spartanburg in South Carolina is one of the assets included in the review. Stutzman added that the review process “is expected to take place over the next several months, and could potentially result in a divestiture of one or more polymer and resins sites located in the US and Mexico.
“If, however, it is determined that other parties do not value the North American polymer and resins assets even more than Invista does, we plan to continue operating and driving strategies for each site that maximize long-term value.”
Invista’s engineering resins, specialty materials (including polyols) and European polymers and resins businesses are not included in the review.
Invista is the second North American PET maker to state publicly that it is conducting an asset review. Earlier this year, Eastman Chemical confirmed it had hired Bank of America Merrill Lynch as its financial adviser to explore all options, including the potential sale of its PET unit.
North American PET makers have suffered from overcapacity and decreased margins, stemming from reduced demand and from efforts made by the packaging industry — PET’s largest end market — to use less PET per bottle.
Invista is owned by Koch Industries, which bought DuPont’s Invista fibres unit in 2004 and combined it with its KoSa PET unit. The company closed two PET plants in the US and Canada in 2008. Prior to those closings, it ranked as one of the region’s largest PET makers, with a market share estimated at 24%, based on annual sales.
The company entered the North American engineering resins market last year, saying it would begin production of nylon 6/6 resin. This move coincided with the end of a non-compete agreement with DuPont. Invista officials have said their engineering resins business will not be affected by a related lawsuit filed by DuPont in late 2008.