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Dupont to restructure fibers division.

Du Pont To Restructure Fibers Division

With a focus on significantly improving productivity, Du Pont Fibers, Wilmington, DE, has instituted a continuing cost restructuring of its business. The plan is a part of a $1 billion corporate cost reduction initiative that many feel may radically alter the company's way of doing business.

The Fibers plan, announced by senior vice president Jack Krol last month, targets a $150 million cost reduction effort this year and next and builds on work already underway in the unit. More than 700 jobs have already been eliminated in the division and an additional 1000 positions will be eliminated in the next 15 months, more than half of that before the end of the year.

The work elimination effort is part of a broader cost reduction plan involving all fibers businesses. Emphasis, however, is on the highly competitive, mature products such as "Dacron" and nylon for textile, carpet and industrial uses. There has been no indication of the impact on the nonwovens business, although the company did reveal this summer it is going ahead with plans to expand "Tyvek" and "Sontara" production into the Far East by 1995 (see Du Pont article as part of the Top Companies feature in this issue for more details.)

The cost reduction move comes on the heels of an earlier announcement that Du Pont will invest $300 million in the next two years to modernize Dacron polyester filament and staple manufacturing facilities. Du Pont's Dacron filament capacity will be increased by about 20%. The modernization will begin immediately and will essentially be completed in 1994. In addition, Dacron fixed costs will be reduced by at least 20%. This will be accomplished by improving manufacturing productivity, consolidating the organization and reducing overhead associated with the business.
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Title Annotation:E.I. du Pont de Nemours and Company Inc. Fibers Div.
Publication:Nonwovens Industry
Article Type:Brief Article
Date:Sep 1, 1991
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