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Flexsys Announces Exit of Primary Accelerators Business

Some major news that was announced while I was traveling:

ST. LOUIS, April 22, 2010 /PRNewswire via COMTEX/ — Solutia Inc. announced today that it will exit the Primary Accelerators business and discontinue Primary Accelerators production at its facility at the Monsanto Antwerp site in Belgium. Production of Primary Accelerators is scheduled to stop in the second half of 2010.

“This decision is consistent with Solutia’s overall strategy to focus on businesses that are market leaders with a sustainable competitive advantage,” said Mike Donnelly, President and General Manager of Solutia’s Technical Specialties division. “As the Primary Accelerators market is oversupplied with low-cost Asian producers and there are few barriers to entry, Solutia has determined this business no longer meets our strategic criteria.”

This decision does not affect the Santoflex PPD manufacturing operations at Antwerp, including production of 4-ADPA, the key intermediate for Solutia’s Santoflex(R) line of antidegradants. “Our patents and scale in the PPD business give us a sustainable competitive advantage,” added Donnelly, “allowing us to deliver value to both customers and shareholders.”

This action regarding Primary Accelerators is a necessary and strategic step in positioning Solutia’s Flexsys portfolio to remain the global leader in the manufacture and supply of high-quality rubber chemicals that have a competitive advantage in the market. Over the coming months, Solutia will work closely with customers, suppliers, and Monsanto to provide a smooth transition out of the Primary Accelerators business.

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