DuPont still tied to tyre cord JVs

By Patrick Raleigh, ERJ On-line news editor

London-DuPont has not yet divested its tyre cord interests as part of its sale of the Invista fibres and intermediates business to Koch Industries. The $4200-million sale was completed on 30 April, but did not include DuPont's holdings in three joint ventures, including DuSA International and Branta Mulia Group, a group spokesman indicated.

“The transfer of these three equity affiliates will be delayed until the company receives approval from its equity partners, which is expected in the second half of the year,” according to a DuPont statement. The company said it expects to receive around $77 million from the sale of three affiliates.

DuSA-a 50:50 Wilmington, Delaware-based JV between DuPont and Sabanci Group of Turkey-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.

DuPont also holds a 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.

DuPont announced its intention to sell its interest in these JVs last November, with the planned sales made subject to a letter of intent with Koch. The parties had aimed to complete these various deals in the first half of 2004.

These tyre-cord interests would position Koch's KoSA subsidiary among the largest players in this sector and significantly enhance its tyre-yarn-conversion capabilities.

KoSa's 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; Querétaro, Mexico; and Bobingen, Germany.