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Solutia Plant Sold To New York Company; No Word On Plant’s Future
April 2, 2009
The Solutia plant near Cantonment has been sold to a New York-based private equity capital group. There’s no immediate word on what the future holds for the nylon plant.
Solutia says the $50 million sale of the nylon division, which includes the local plant, is expected to be finalized by the end ofthe year.. The purchaser is SK Capital Partners of New York.
The 55-year old plant near Cantonment was hit hard by layoffs back in November when over 600 Solutia and contract employees were laid off. The future of the plant has not been announced by the new potential owners. The plant currently employs about 800 people.
“This is a good business with solid fundamentals, a strong customer base and top talent that has been significantly impacted by these difficult economic times,” said Barry B. Siadat, a co-founder and managing director of SK Capital Partners. “We are excited about investing in Solutia’s integrated nylon business, partnering with their management team.”
“We are pleased to have reached this agreement with SK Capital Partners,” said Jeffry N. Quinn, chairman, president, and CEO of Solutia Inc. “As the new owner of the nylon business, SK Capital Partners will bring significant industry experience that I strongly believe will help the integrated nylon business in continuing to reach its full potential.”
“With this deal, SK Capital Partners is both identifying an opportunity in the marketplace and getting back to the roots of private investing: skilled operators pooling their talents and resources to create value,” said Clark Winter, SK Capital Partners chief investment officer. “In Solutia’s integrated nylon business, we’ve found a company that we will be able to manage through tough economic times, improving operational execution to realize the benefits of future growth and new product development.”
SK Capital Partners invests in several industries including niche segments of the specialty materials, chemicals and health care sectors.
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3 Responses to “Solutia Plant Sold To New York Company; No Word On Plant’s Future”
Solutia could have not jerked the men and women over 55 around leaving totally in the dark as to what to do with their retirement. They stuck with the company through bankruptcy for years. Remained loyal workers. At 55 they stoped funding thier pension and stopped paying them interest. For over three years!Who got the interest? They did. Then they stopped the sip program matching it dollar for dollar. I know they were selling, but so many can’t take their lump sum now. They have to quit their job to do it. I hope the new company cares more for people and hard workers who have invested many years of their life at this plant. I hope they treat the younger men and women better. They are good people and they deserve more than one raise in four or five years. Times are tough, and everyone realises that, but the retirees deserved to have more than one day to the next to decide to quit their job and take their lump sum. Had to quit the job to take it even if wanting to work until 62. If they stayed, and Solutia’s retirement when split goes to 50% vested , the state would get it. They didn’t let them know if the plant was sold or if they would take the retirement, etc. Very stressful and the managers were probably in the same state of unknowing. They didn’t even give retirees a letter or any time to check on how to invest their retirement if they took it. Very stressful. Not a way to have to consider retiring. I hope things turn out better with this company. I hope they care about people more. Solutia was a good company, and I know they had hard times, but corporate still got their double million in bonus’s. Isn’t that the problem with the car bailouts? I hope the future for the hard working people there are better. A concerned daughter in law of a retiree. A person should know something. Retiring should be a happy time. You could have let them know something Solutia. Now so many will not get the lump sum unless the new company offers it. Who knows what will happen now? Will he ever be able to retire or will he have a job? Who knows. These are lives you are dealing with, and please please treat these good people right S&K. I am believing this company will be better. I remain optimistic. Sorry Solutia had problems, but you could have rewarded the people who have been with you so many years and at least let them know something sooner. Not stress and wonder for over a year if they have a job.
The business leaders (notice I didn’t say government leaders) need to pursue new business opportunities for Escambia, businesses that focus on future technologies and businesses with strong growth potential, for relying on the existing industries (the plant in the article and the papermill being two of the main ones) while they continue to downsize and ship operations overseas, while trading ownership, isn’t going to maintain a level of employment opportunities needed.
Can you say junk bonds. Somebody going to get rich, and it aint the workers.