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Wilmington business to cut fifty jobs

Posted by Scott Saxton - email

WILMINGTON, NC (WECT) - A producer of polymers and fibers is cutting jobs as it cuts back on production of an acid in Wilmington.

Invista plans to discontinue the production of PTA, Purified Terephthalic Acid, because it is not cost-effective to produce the acid compared to buying it on the market.  This will take place over the next thirty days.  The company will also scale back production of polyester intermediate DMT.

The company announced Monday it will eliminate fifty employee and contractor roles, although its specific plans are still in the works. 

In a written statement, Wilmington site manager Bill King said, "While it's a tough decision, remaining competitive is key to our success. That's why we made the difficult decision to discontinue manufacturing certain polyester intermediates that can be purchased more economically in the market."

The Wilmington office is also responsible for producing TERATE^® polyols, which is a chemical intermediate used in the production of polyurethane foams.

In 2007, the New Hanover County Commissioners unanimously voted to spend $3 million of tax money over a six year period in an effort to lure Invista jobs to the county.

The following is the statement from Invista:

February 18, 2010

The global economic slowdown created a very challenging period for many industries including some of the markets in which INVISTA operates. 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). 

Additionally, the economics of producing PTA (Purified Terephthalic Acid, a chemical intermediate used to produce PET) in-house are not competitive relative to the alternative option of purchasing PTA from the merchant market. 

Therefore, to optimize the operating footprint at the Wilmington site, it has become necessary to cease production of PTA and reduce its DMT production to levels that ensure meeting the needs of INVISTA's internal and external sales customers. 

Specific staffing plans are still pending, but the site anticipates the reduction of approximately 50 employee and contractor roles.  Affected individuals will be treated with respect and sensitivity through the transition. 

The site expects to discontinue PTA production within the next 30 days, followed by scaling back DMT production over the next several months to match internal and external sales needs. 

"While it's a tough decision, remaining competitive is key to our success. That's why we made the difficult decision to discontinue manufacturing certain polyester intermediates that can be purchased more economically in the market," said Bill King, INVISTA Wilmington site manager.

"These actions will help improve the competitive positions of both the INVISTA Wilmington and Spartanburg sites, while continuing to meet the needs of the INVISTA Spartanburg site's businesses and the INVISTA Wilmington site's TERATE^® polyols business," said King.

DMT and PTA are both pre-cursors to the production of PET and other polymers from which polyester fibers and resins are made. In addition to those products, the Wilmington site also produces the specialty material TERATE^® polyols, a chemical intermediate used in the production of polyurethane foams used for commercial and residential insulation.

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