DuPont Forms New Subsidiary "DuPont Textiles & Interiors"

Furniture World Magazine

DuPont announced the formation of "DuPont Textiles & Interiors", a new wholly-owned subsidiary, which becomes the largest integrated textile fiber and interiors company in the world, with approximate annual revenue of $6.5 billion and 22,000 employees, operating in 50 countries. Headquartered in Wilmington, Del., DuPont Textiles & Interiors (DTI) will be comprised of two businesses, each with subgroups: Textiles and Interiors -- including Apparel, Home & Industrial, and Flooring; and, Intermediates -- including nylon, Terathane® and polyester intermediates, specialties and joint ventures. Zytel® nylon resins will remain with DuPont. The new subsidiary will have a powerful portfolio of DuPont’s best known, worldwide brands and trademarks including: Lycra®, Stainmaster®, Coolmax®, Thermolite®, Supplex®, Antron®, Cordura®, Tactel®, Dacron® and Micromattique™. The venture will also have the opportunity to leverage other brands including the DuPont and Teflon® brands. "Upon formation of this subsidiary, we will become the largest player in the worldwide textile and interiors business with a portfolio of brands that is second to none, and it will enjoy the number one position in the six markets that comprise 75 percent of its revenue," said Richard R. Goodmanson, executive vice president and chief operating officer of DuPont who will head the leadership team of DuPont Textiles & Interiors. "Today is an important day for the global textile industry. This new subsidiary will focus on innovation, research & development, cost efficiencies, manufacturing efficiencies and responsiveness to our customers around the world. We are wholly committed to making this company the model for the future." Steven R. McCracken, group vice president and general manager, DuPont Apparel & Textile was named lead for the downstream businesses and George MacCormack, group vice president and general manager, DuPont Chemicals and Polyester, was named lead for the upstream businesses. DuPont also announced that it has engaged the investment bank Morgan Stanley to explore a full range of strategic options for the new subsidiary, including an Initial Public Offering (IPO), with the ultimate intent of separation no later than year-end 2003, market conditions permitting. McCracken said "Our new company will demonstrate its commitment to innovation, competitiveness and brands to help our customers differentiate themselves in an increasingly competitive and commodity-oriented environment. In 2002, we will be investing over $300 million to increase ours and our partners businesses via differentiation and penetration by delivering newness to our target consumers." McCracken continued, "Our vision for the new organization is one of focus and commitment. We will have a flat corporate structure that is fast to act and fast to respond. We believe that the customer and consumer want the same spirit of technological innovation in their textiles and apparel that they see in other products like electronics and computers. DuPont Textiles & Interiors will be the company to deliver on that promise." George MacCormack added, "As an integrated producer, DTI now has the scope and scale to profitably supply intermediates and polymer to our current and potential customers, and to grow in to the merchant market around the world." The new company will have the largest Research & Development budget in its industry with approximately $170 million earmarked for product and process innovation in 2002. During 2002, DuPont is celebrating its 200th year of scientific achievement and innovation – providing products and services that improve the lives of people everywhere. Based in Wilmington, Del., DuPont delivers science-based solutions for markets that make a difference in people’s lives in food and nutrition; health care; apparel; home and construction; electronics and transportation.