Nylstar To Acquire AlliedSignal Nylon Yarn

Nylstar Inc., Greensboro, N.C., a joint venture between Rhodia and SNIA, recently issued a letter
of intent to acquire AlliedSignals textile nylon yarn production unit in the United States. Nylstar
hopes to increase its sector lead in Europe, while bolstering its U.S. presence.The target business
for the acquisition is based on AlliedSignal facilities in Columbia, S.C., with a workforce of
approximately 200 and annual production capacity of more than 15,000 tons of nylon 6 textile
yarn.According to Nylstar, the reshaping of operations at the facility will be based on investment
in new production lines that are also suitable for the manufacture of nylon 6.6, with annual
revenues of approximately $80 million. The decision to enter the American market directly serves
the objective of enlarging the companys market share while enabling a rapid U.S. introduction for
more technologically advanced policies oriented towards high-product quality that have proved
successful in Europe, the company says.This agreement is another step towards globalizing our
products and our ability to operate in a number of differing markets, said Carlo Veronelli,
Nylstars general manager. Our key territory is still Europe however; thats where Nylstar has made
its major commitment to offering technologically advanced products that meet the needs of
customers, designers and the distribution industry alike.

September 1999