Solutia Shutting Down Nylon Business, Over 700 Local Employees Affected

November 21, 2008

Solutia became the latest company to announce a shutdown. Company officials say they are temporarily shutting down the Gonzalez facility’s nylon production, resulting in the layoff of about 200 employees. Another 450 contract employees, mostly employed by the Mundy company, were affected by the announcement today and earlier actions by the company. Another 55 Solutia employees had already been terminated before Friday’s layoffs.

A company official said that the company hopes to return production to normal levels as soon as possible and return most of the employees back to work. But about 55 of jobs will be permanently cut due to cost cutting measures at the Solutia plant.

Those losing their jobs permanently  will be eligible for severance benefits. Those temporarily layoff employees will be eligible to continue their health and other benefits. Both Solutia and Mundy are working with the employees to assist them in filing for unemployment benefits.

“In recent years we have matched our manufacturing output and inventory levels with the very strong demand present across the nylon markets,” said Jim Voss, senior vice president of the St.Louis based Solutia Inc. and president of the Nylon business. “However, in the last several weeks, demand has declined significantly for nylon intermediate chemicals, fibers and resins. Therefore we are taking necessary actions to align our production and inventories with the current economic environment.”

The key component of the restructuring plan is to temporarily decrease production throughout the Nylon chain — from intermediate chemicals to fibers and resins. “We anticipate that this will be a temporary situation, and we will bring these assets back to more normal operating rates as inventories decline and demand returns,” added Voss. “We are meeting our customer commitments and will continue to do so going forward.”

Comments

8 Responses to “Solutia Shutting Down Nylon Business, Over 700 Local Employees Affected”

  1. Jen on November 25th, 2008 11:27 pm

    My husband was blessed to keep his job for now at the plant…..but things are still uncertain.. My prayers are with the families that were effected. May God bless you all and keep you in his care.

  2. Tom on November 23rd, 2008 8:22 am

    When God closes doors he opens others. Try and stay positive. The old saying that a Recession is when your neighbor loses his job, a Depression is when you lose your job. We are likely going into a depression as a country. Folks better buckle up and hold on. Get out of DEBT!!!!!!!!!!!!!!!!

  3. Emily on November 22nd, 2008 7:18 pm

    I would like to challenge everyone this holiday season to remember the true meaning of Christmas. Don’t get wrapped up in the rat race of shopping and buying things just for the sake of buying.
    We are blessed to escape this layoff, but things are still uncertain. Children need to realize to put God first and material things aside (I know its hard I have two children myself), but keep faith and everything will work out.
    GOD BLESS

  4. Deborah on November 21st, 2008 6:45 pm

    My husband was one of the men layed off today. It is very difficult for us, but more so for others. We don’t have children at home to worry about. I cant imagine what is must be like for them. PLEASE STOP AND SAY A PRAYER FOR EVERYONE THAT IS LOSING THEIR JOBS.!. You never know….It could be you next..
    GOD BLESS US ALL.

  5. kim on November 21st, 2008 5:34 pm

    It is very sad especially here at the holidays! My heart goes out to all the families affected by this. My husband has worked at International Paper for 19 years and we have had to deal with the uncertainties over the years of whether the mill would be shut down. So far we have been blessed but we’ve had alot of unstable times. Jobs like IP and Solutia are hard to replace between the income and the benefits for our families. With the economy none of our jobs are secure. The shape that our nation is in is so scary and all we can do is hope and pray that things will get better!

  6. Beegee on November 21st, 2008 4:13 pm

    This has affected three families that I personally know and love…..two of whom I work with……..it was a very sad day for us…………one man of the men had given 35 years of his life to a company that took his badge and escorted him out the gate……this is only three families that I’ve heard from….there is probably more that I know……….tis a sad day in Escambia County !!! We love you and await our turn,for it’s surely around the corner……………

  7. Jacob on November 21st, 2008 3:53 pm

    It’s very sad, my dad was layed off last thursday from Mundy, a contracted company based at Solutia, and this has been the worst week of our life. The unemplyment doesn’t hardly put a drop in the bucket though. Its really sad, when you’ve put in 23 years of service for the company and all you get when you are layed off is $275 a week. And you go through hell and back just to get that. There’s nothing that can be done except complain and that does nothing. In the end I pray that everyone will be blessed.
    Glod bless!!!

  8. C on November 21st, 2008 1:28 pm

    How sad….It’s happening everywhere! Could it come at a better time of year?! What are people suppose to do to support their families? The government isn’t in any better shape. All goes to prove that the only one that you can count on is God. God please bless all of these people affected by this layoff.