Solutia (St. Louis, Missouri / USA; www.solutia.com) is to sell its nylon business to an affiliate of private equity firm SK Capital Partners (New York City / USA; www.skcapitalpartners.com) for USD 50m (EUR 37.6m). Solutia will also receive a 2% equity stake in a new company established to hold substantially all of the assets of the nylon business on closure of the deal, which is expected at the end of the second quarter of 2009. Solutia stepped up restructuring of its nylon business at the end of 2008 to aid sale plans – see Plasteurope.com of 01.12.2008.

The nylon business sale includes the business’ management and employees, as well as all five of its US manufacturing plants in Chocolate Bayou, Texas; Decatur and Foley, Alabama; Greenwood, South Carolina; and Pensacola, Florida. SK Capital will assume substantially all of the liabilities of the business, including employee and pension liabilities relating to the active employees of the business, and environmental liabilities. Solutia will use the nylon sale proceeds to pay down debt under its asset-based revolving credit facility.

Jeffry Quinn, chairman, president, and CEO of Solutia said that following the divestment "Solutia is well positioned to generate consistent financial returns and to further develop and enhance its portfolio in the specialty chemicals sector."