ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, November 15, 1996 TAG: 9611150029
SECTION: BUSINESS PAGE: A-10 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
DuPont said Thursday it will cut about 2,850 jobs and close some plants in its nylon unit, including a factory in Martinsville that is that community's ninth largest employer.
The move, according to the Wilmington, Del.-based chemical and energy giant, is intended to boost efficiency and reduce annual costs by $700 million.
DuPont confirmed it will close the Henry County nylon plant in two years, saying the action is part of a $750 million upgrade of its nylon business. The statement affirmed what the company said Aug. 26 - that it intends to cut 550 high-paying factory jobs as it prepares to close the Henry County plant by the end of 1998.
Layoffs are to begin at the end of 1997. DuPont pays an average of $15 an hour at the Martinsville plant.
The company plans to invest $750 million in five years to upgrade equipment. The nylon unit generated about 14 percent of DuPont's revenue last year, an analyst said.
DuPont, which invented nylon in 1938, is taking the steps to keep its competitive edge as rivals find ways to produce less expensive fiber, which is used in carpet and apparel, among other things. The factory improvements will allow DuPont to make a more uniform nylon product that is easier to dye, as well as to develop new products designed for specific customers.
``If they want to continue to be the world leader in nylon, they're going to have to make sure they remain the low-cost leader,'' said William Young, an analyst with Donaldson, Lufkin & Jenrette.
Because it is 55 years old and outdated, the Martinsville plant was passed over for a factory equipment upgrade, the company said.
Of the 2,850 jobs to be eliminated companywide, 1,400 are in North America. The cuts represent 15 percent of the nylon unit's 19,000 workers. The company said it expects to reduce its payroll mostly through "normal attribution" rather than layoffs.
DuPont said it will close some of its other 27 plants worldwide as well as the one in Henry County. Those most affected will include the flagship nylon production plant in southern Delaware and others in Kingston, Ontario; Uentrop, Germany; and Doncaster, United Kingdom. A decision has not been made on what to do with plants in Athens, Ga.; Mercedes, Argentina; and Bayswater, Australia, DuPont officials said.
Its overall fiber sales increased 7 percent in 1995 to $7.2 billion, or 20 percent of DuPont's $36.5 billion in revenue.
DuPont common stock, traded on the New York Stock Exchange, fell Thursday 61/64 of a cent to $92 a share, with 2.34 million changing hands, more than double the three-month daily average of 954,600.
Bloomberg Business News and The Associated Press contributed to this report.
LENGTH: Medium: 57 lines KEYWORDS: JOBCHEKby CNB