Invista Considers Divesture

Invista, the fibers and resins business of Koch Industries, says it's in "the preliminary stages of a market assessment" of its North American Polymer & Resins business.

The business makes polyethylene terephthalate (PET) resins for packaging and film applications as well as some stable polyester fiber. Included in the assessment are polyethylene terephthalate plants in Spartanburg, S.C., and Queretaro, Mexico, as well as a plant that makes a raw material for PET, dimethyl terephthalate, in Wilmington, N.C.

The company says similar assets in Europe, as well as its polyols business, will not be included in the sale. When asked whether its polyethylene terephalate and purified terephthalic acid licensing business is included in the transaction, Invista spokeswoman Jodie Stutzman said, "it is too premature to define the scope," of the businesses that might be for sale.

Most of the assets that Invista is selling originated with Hoechst's Trevira unit. In 1999, Hoechst sold the polyester unit to a partnership between Koch and Mexico's Grupo Saba. In 2001, Koch bought out Saba's 50% stake in the unit, called KoSa at the time, and then merged the business with the Invista unit it bought from DuPont in 2004.

The North American PET industry has struggled in recent years because of overcapacity. In 2008, producer Wellman declared bankruptcy. Eastman Chemical said in April, 2010, that it was considering a sale of its PET business.

Though the privately held Koch doesn't disclose financial statements, its PET business has shown some signs of struggle as well. In 2008, the company closed lines at its Greer, S.C., plant and idled its Millhaven, Ontario, plant. It has also closed a purified terephthalic acid plant in Wilmington, N.C.