USA: Kosa Reorganizes Textile Fiber Business

US major polyester producer Kosa will split its textile fiber activities as a result of the downturn in the world market. The textile fiber division will therefore be eliminated and his business leader, Eduardo Rocha, will step down.

"The economic downturn has challenged KoSa's textile fibers businesses and we need to respond by aggressively reducing costs and rethinking our business structure," said in a statement George Gregory, KoSa chief executive officer.

The Textile Fibers division will be divided into three separate segments, nonwovens, filament, and fine denier staple.

The nonwovens segment will join the Technical Fibers business group while the

filament segment will be integrated into the "Intermediates and Polymers and

Filament" unit. The fine denier staple segment will depend on the Packaging Resins and Fine Denier Staple. The Houston-based group also announced it has completed purchase of the 50% in shares owned by Mexico's Imasab, until now.

EU's Commission just cleared the deal "which does not in fact cause any competition problem within the European Economic Area," it said this week.

"The acquisition will have a positive effect on KoSa," said George Gregory, allowing "a faster decision-making process."

KoSa was initially a joint-venture formed in 1998 by the US Texan group Koch Industries and Mexico's Imasab to acquire a large part of Hoechst's polyester activities.

November 19, 2001

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Added: November 19, 2001
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