DuPont to Sell Selected U.S. Polyester Businesses to Alpek S.A.
DuPont today announced that it has reached a definitive agreement to sell certain of its U.S. polyester Enterprise businesses and manufacturing assets to Alpek, the petrochemical group of Mexican industrial conglomerate ALFA S. A. de C.V. (ALFA).
"Today's announcement reflects the next step in our strategy to reshape our overall investment in polyester to maximize value to our shareholders," said Gary M. Pfeiffer , DuPont chief financial officer.
DuPont has agreed to sell to Alpek its U.S. terephthalic acid (TPA) business and its polyethylene terephthalate (PET) container resins business, along with their associated manufacturing assets at the Cape Fear site in Wilmington, N.C., and the Cedar Creek site in Fayetteville, N.C. DuPont also said it has agreed with Alpek to exit the companies' polyester staple fiber joint venture by mid-year 2002. The venture was formed by the two companies in 1999.
Alpek will also purchase polyester polymerization facilities at the Cape Fear site and at the Cooper River site, located in Charleston, S.C. DuPont will grant licenses to Alpek for manufacturing technology of PET resins and the use of the Melinar® and Laser+® brands in the Americas region.
Transfer of ownership is expected to occur in July. Terms and conditions were not disclosed. The company expects a one-time, non-cash charge of $.15 to $.17 to earnings in the second quarter to reflect a write-down to fair value of assets to be sold.
Separately, Alpek and DuPont also announced today that DuPont will increase its equity position from 40 to 50 percent in their Mexican joint venture Fielmex, which manufactures and markets Lycra® elastane fiber, commensurate with its 50 percent equity position in a nylon joint venture in Mexico. This transaction will enhance Fielmex's access to DuPont stretch technologies.
Other news from the department
