Chemical giant DuPont Co revealed on Tuesday a major reorganisation of its corporate structure that will see it create a separate textiles and interiors subsidiary which will be separated from the rest of the firm by the end of 2003.

The new subsidiary, called DuPont Textiles & Interiors will be the world's largest integrated fibres company with annual sales of around $6.5 billion - around 23 per cent of total DuPont sales in 2001.

It will include the Stainmaster carpet, Antron nylon carpet, and Lycra fibre enterprises and will be headed by executive vice president and chief operating officer Richard Goodmanson.

The chemicals giant said in a statement it would also align its other business groups and has hired Morgan Stanley to help it look at a possible initial public offering and suggest other ways to spin off the business from the rest of DuPont.

Chairman and chief executive, Charles O Holliday Jr, said: "Our nylon, polyester and Lycra businesses have played a very important role in DuPont for many decades.

"With rapidly changing industry dynamics and tough market realities, we believe the course we have chosen is necessary to allow them to succeed in the future."

DuPont added that it was too early to say if there would be any job losses but that charges relating to the separation would be covered by "aggressively" cutting costs in the company's corporate and support services.