AlliedSignal Gains In Nylon Compounds With Nyltech Purchase

AKRON, OHIO: AlliedSignal Inc. has agreed to purchase Nyltech's Manchester, N.H., nylon production facility and Nyltech's specialty compounding operations. The specialty compounding business gives AlliedSignal the capacity to produce a variety of nylon compounds that have had limited uses but high margins. The acquisition may help AlliedSignal Plastics, which AlliedSignal has defined as a strategic segment, improve results in highly competitive markets where margins have been reduced by over-capacity and price cutting. AlliedSignal Plastics now is the largest producer of specialty nylon resins, a specific variety of nylon, and is the second largest producer of all nylon resins, behind DuPont, in North America. AlliedSignal's nylon resins are used in handles for power tools, automotive components, wire and cable insulators, and electrical and electronic components. The announcement about the acquisition of Nyltech's North American business coincided with AlliedSignal's announcement that it would sell its North American Textile Nylon business to Nylstar, a joint venture between Rhodia SA of France, and Snia of Italy. Rhodia and Snia also jointly own Nyltech. The companies did not release information about the sales volumes of the businesses, nor did they release terms of acquisitions.

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