ERJ staff report (DS)
St. Louis, Missouri -- In announcing record Q2 results, Solutia highlighted progress made in its Flexsys business. Jim Voss executive vice-president and coo said progress at the Flexsys business demonstrates Solutia's ability to re-structure a business to extract maximum value. Flexsys operaties within the Technical Specialities (TS) unit at Solutia.
Voss said the TS unit is now oprerating at margins (EBITDA) of 39 percent, up from 20 percent when Solutia acquired the business in 2007. Sales reached $811 million in 2010, even though Flexsys has exited the primary accelerators market. The company now sells two key product lines : Santoflex (anti-degradents) and Crystex (insoluble sulphur)
Voss said Flexsys is a bout a year away from introducing a new process for making insoluble sulphur which should improve quality and reduce costs. He also said the company intends to build a new Crystex plant in China soon, saying that it would be full as soon as it opens, because the company is currently shippping large volumes to China from its existing facilities. He said the company would address its manufacturing portfolio once new capacity is open. He did not have time to respond to questions about whether the China plant would use the new technology.
The company commented briefly on its litigation with Sinorgchem, saying that the recent ruling in Sinorgchem's favour would not have much impact on the business.
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Results page from Solutia (use the links on this page to download the presentation material and listen to the analysts' conference call.