Demand drops, production costs too much now
By Wayne Faulkner Wayne.Faulkner@StarNews Online.com
Published: Monday, February 22, 2010 at 6:21 p.m. Last Modified: Monday, February 22, 2010 at 6:21 p.m.
Invista SARL will stop production here next month of one product and cut output of a second, resulting in the loss of 50 jobs, the company announced.
Invista cited the economic slowdown and changing market demands.
Invista said it would be cheaper to buy PTA (purified terephthalic acid) on the market than produce it here.
The Wichita, Kan.-based Invista SARL has four global businesses that produce chemical, polymer and fiber products. Its Wilmington facility is at 4600 U.S. 421 North.
“While several Invista business units are beginning to see preliminary indications of what we hope will be a sustained economic recovery, there has been some level of permanent industry demand loss for the polyester intermediate DMT (dimethyl terephthlate),” the company said in a news release.
DMT production will be cut back over the next several months, Invista said.
The 50 job cuts are split between company employees and contract workers, Invista said.
The Wilmington site also produces the specialty material TERATE polyols, a chemical intermediate used in production of polyurethane foams used for commercial and residential insulation.
“While it’s a tough decision, remaining competitive is key to our success,” said Bill King, Wilmington site manager for Invista.
“That’s why we made the difficult decision to discontinue manufacturing certain polyester intermediates that can be purchased more economically in the market,” added King, who also is board chairman of Wilmington Industrial Development.
