What next for Unifi?
June 10, 2004 | bengisu
Polyester texturiser Unifi, Inc. has taken a number of new steps to enable it to compete more effectively after its most recent round of restructuring.
Time will tell whether the recent measures by Unifi are good enough to stop the US yarn processor from having to restructure its operations again - especially given that an agreement is still in place for DuPont to exercise an option to sell Unifi its POY business in June 2005.
DuPont says the sale price could be anything between $300 - 600 million, according to the original agreement.
This would be a substantial hit for Unifi to take, especially since it wants to exit POY production and source on the global market.
Perhaps with this situation in mind, the company has changed its strategic approach to China by shelving plans for a future joint venture with fellow polyester texturiser Kaiping in China. Instead, the company says it will set up its own subsidiary in the country. However, cooperation with other Chinese partners has not been ruled out either.
Unifi feared that regulatory approvals, which would not begin until a final agreement with Kaiping was signed, would cause further delays. But the US company is eager to start manufacture in China - as soon as possible. Further delays were not welcome.
more: inteletex.com/FeatureDetail.asp?NewsId=2935 (76)
126 impressions - 39,960 clicks
