USA: DuPont And Unifi Begin Polyester Manufacturing Alliance
The alliance, which involves production only, has a combined capacity of 800 million pounds. DuPont will manage production planning and scheduling of all POY assets. Production will be realigned among DuPont's Dacron polyester filament plants in Wilmington, NC and Kinston, NC and Unifi's POY plant in Yadkinville, NC.
"This alliance will benefit our customers because it enables us to produce higher quality products and develop more specialty and tailored products. At the same time, we will significantly improve our competitive cost position as this alliance is fully implemented," said Harry Parker, vice president and general manager, DuPont Dacron filament.
"Being at the beginning of the supply chain, fiber and yarn innovation plays a critical role in creating end-use excitement and newness among consumers," says Brian Parke, Unifi's president and CEO. "This alliance will allow us to focus our efforts on product innovation and increase the speed-to-market of new products."
DuPont's Dacron POY business and Unifi's textured yarn business will continue to operate separately. Each company will continue to own and operate its respective sites and employees will remain with their respective employers.
DuPont and Unifi can terminate the alliance at any time by mutual agreement. At termination, or at any time after June 1, 2005, Unifi has the option to purchase from DuPont and DuPont has the option to sell to Unifi DuPont's US polyester filament business at fair market value within a predetermined range. If Unifi exercises its option, DuPont is obligated to sell the business to Unifi and, if DuPont exercises its option, Unifi is obligated to buy the business from DuPont. Should either option not be exercised, the alliance could continue.
DuPont (NYSE: DD) is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation. Founded in 1802, the company operates in 70 countries and has 94,000 employees.
Unifi, Inc (NYSE: UFI) is the largest producer and processor of textured yarns in the world. The company's primary business is the texturing, dyeing, twisting, covering and beaming of multi-filament polyester and nylon yarns. Unifi's textured yarns are found in home furnishings, apparel and industrial fabrics, automotive upholstery, hosiery, and sewing thread.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in DuPont's and Unifi's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions of countries in which the company does business; competitive pressures; successful integration of structural changes, including acquisitions, divestitures and alliances; research and development of new products, including regulatory approval and market acceptance, and seasonality of sales of agricultural products.
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