ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, March 1, 1996 TAG: 9603010054
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
The DuPont Co. said Thursday it will eliminate about 25 management jobs at its Martinsville nylon plant, part of a larger cut of 1,500 jobs nationwide to make its fiber business more competitive.
The workers to be furloughed about May 1 represent between one-third and one-half of the plant's salaried managers and technical work force, which includes engineers, said spokesman Mike Wall. Plant Manager John Winske could not be reached for comment.
None of the more than 500 hourly jobs at the plant will be cut.
The action covers about 1,200 DuPont employees companywide - those in the DuPont Nylon North America and DuPont Dacron divisions - and 300 who work under contract. Of the 1,200 workers, 400 transferred to other jobs at the nation's biggest chemical company, Wall said.
Wall said other affected workers will receive a severance package that includes cash based on the number of years of service.
DuPont's fiber operations accounted for about $7.2 billion, or 17 percent, of the company's 1995 revenue of $42.2 billion. The cuts will result in a first-quarter charge of $27 million.
``This is all part of the new, worldwide competitive era,'' said Fred Siemer, an independent analyst in New York who covers the chemical industry. ``DuPont is going through every business with a fine-tooth comb.''
DuPont's common stock, traded on the New York Stock Exchange, closed Thursday at $76.50 a share, down $1.25 from Wednesday.
By lowering costs, DuPont will be able to compete more effectively with smaller competitors that have entered the fiber industry, said spokesman Bill Brown. ``These are not our traditional competition,'' he said. ``There are more of these smaller and leaner operators we are competing against. This is a trend in these businesses.''
The Dacron business has had to cope with weaker demand for polyester fiber from a struggling apparel industry.
For months, analysts have said DuPont might sell the Dacron business because it had failed to meet the company's profit goals.
DuPont became the world's largest maker of nylon fiber in 1990 when it swapped its acrylic-fibers business for Imperial Chemical Industries Plc's nylon-fibers business.
Wilmington, Del.-based DuPont began notifying affected employees Wednesday. The 900 jobs being eliminated at DuPont Nylon North America represent about 8.2 percent of its work force. The cuts will reduce operating expenses 10 percent, the company said.
An estimated 40 percent of the jobs being eliminated at DuPont Nylon are managerial and professional, and the cuts will extend across all of DuPont Nylon's plants and offices in North America, the company said.
Bloomberg Business News contributed to this story.
LENGTH: Medium: 57 lines KEYWORDS: JOBCHEKby CNB