May 22 2008
Solutia Inc. announced that its Flexsys(r) subsidiary intends to cease manufacturing at its facility in Ruabon, Wales, by the end of 2008, with complete site exit 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," said Jim Voss, president of Flexsys and senior vice president of Solutia Inc.
Voss added, "Our Ruabon site makes three product lines for which the market is over-supplied due to emerging competition from Far Eastern producers. Despite the significant steps our Ruabon management and employees have taken to improve the position of the site, it is unfortunately no longer cost competitive on a global scale. We will work to ensure the employees impacted by this change are treated the right way, and that our customers have a smooth transition to a new supply arrangement."
Once Flexsys ceases its manufacturing operations at Ruabon, it will no longer participate in the market for the three product lines currently manufactured at that site: Santogard(r) PVI pre-vulcanization inhibitors; Perkacit(r) DPG, which is used as a secondary accelerator in the rubber vulcanization process; and Flectol(r) TMQ and Flectol(r) HPG, which protect against oxidative aging.
Flexsys products play an essential role in the manufacturing of tires and other rubber products, such as belts, hoses, seals, and footwear. Flexsys is a global business with offices, manufacturing facilities and technology centers around the world. Flexsys has annual sales of over $650 million, about two-thirds of which take place outside the United States.