By Patrick Raleigh ERJ On-line news editor
Wichita, Kansas-Koch Industries, Inc. has completed its $4200-million of Invista, from DuPont. The purchase includes the assumption of debt and certain joint venture and equity interests covered under a non-binding letter of intent, said a 30 April joint statement.
Going forward, the company will conduct business as Invista, according to Koch.
â€œOur focus for the near future is to enhance this business' ability to create superior value for our global customers,â€ said Jeff Walker, Invista's chief executive officer.
â€œWe believe that this combination of Invista's strengths, primarily in nylon and spandex, and KoSa's polyester capabilities will position us to compete successfully in the global resins and fibres markets,â€ he added.
Koch has appointed Gerold Linzbach-the current president of its KoSa subsidiary's fibres business- to become president, textile fibres of Invista. His remit will encompass Invista's staple, tyre cord, mechanical rubber goods and polyester textile filament businesses.
Based in the Charlotte, North Carolina-area, Linzbach will head up one of the largest players in this tyre cord sector.
KoSa's existing Tire Cord business principally global supplies high-modulus, low-shrinkage (HMLS) polyester tyre cord and fabric, though it also manufactures nylon tyre cord. The operation has plants in Salisbury, North Carolina; QuerÃ©taro, Mexico; and Bobingen, Germany.
The letters of intent connected to the Invista deal include Koch's purchase of Wilmington, Delaware-based DuSA-a 50:50 JV between DuPont and Sabanci Group of Turkey-to KoSa's portfolio.
DuSA is the world's largest supplier of nylon tyre cord fabric with annual sales of around $450 million. The 2300-employee firm has a combined capacity of over 100 kilotonnes per annum (kpta), and operates eight plants, located in the US, Turkey, Argentina, Brazil, Germany and Egypt.
KoSa also has an existing business relationship with Sabanci, its former partner in SAKOSA-a 50:50 polyester tyre-cord joint venture until late 2001, when KoSa sold out to the Turkish group. With the sale, KoSa agreed to continue to provide its HMLS fibre technology to SAKOSA and maintain a marketing relationship with the firm.
KoSa is also acquiring Invista's 20-percent stake in Branta Mulia, a Jakarta-based manufacturer of nylon and polyester tyre reinforcement with plants in Citeureup, West Java, and Ayutthaya, Thailand. The Indonesian group reported 2002 sales of around $154 million.
Branta Mulia claims to be one of the largest suppliers in South East Asia with capacities of 22.5 ktpa for nylon tyre yarn, 10.5 ktpa for polyester tyre yarn: and around 40 ktpa for tyre cord fabric.
The Jakarta group is also the majority partner in PT Branta Mulia Teijin Indonesia, a 70:30 polyester tyre yarn JV with Teijin Ltd of Japan. This venture was set up in 1996 to produce a sell polyester tyre cord yarn at Branta Mulia's Citeureup site.