p class="MsoNormal" style="LINE-HEIGHT: 12pt; mso-outline-level: 1">Dalton, GA
Nov. 16—BP has decided to terminate the process of selling its Fabrics and
Fibers business. According to BP general manager Rush Clark, “We’ve received
several bids for the business, but none reflected its full value. It’s clear
that the attacks of September 11 and the ensuing depressed economy have had a
substantial negative impact on financial markets, resulting in offers that are
well below the intrinsic value of the business.”
BP intends to retain the fabrics and fibers business within its chemicals stream
for the medium term.
“While fabrics and fibers is a first class business and a leader in its
industry, it doesn’t fit well with the rest of BP's chemicals portfolio,”
said Clark. “We believe it would fit better with another company's portfolio
where it would be more strategic, and we’ll look to sell the business when
market conditions improve.”
In addition, BP is still in discussion with potential buyers for its plastic
fabrications group (PFG), but it’s unlikely that it will achieve a sale in
2001. However, given the prevailing market conditions it’s possible that BP
may also have to hold PFG for the medium term.
The fabrics and fibers business is the world’s leading producer of primary and
secondary polypropylene carpet backings and a leading manufacturer of nonwoven
polypropylene fabrics for furniture and bedding construction. The business is
also a leading supplier of woven and nonwoven geo-textiles and woven fabrics for
a wide range of packaging applications. Its annual turnover is approximately
$500 million.
BP’s Fabrics and Fibers business includes 12 wholly owned sites and
manufacturing operations—seven in the U.S. and one each in Germany, Hungary,
Mexico, Brazil, and Australia.
Copyright
2001 Floor Focus Inc
