AKC Note: This sounds like a strategy very similar to that pursued by DuPont when they spun off their fibers and raw materials business into Invista before eventually selling the business to Koch Industries. The Nylon 6 business where Honeywell is involved is going through a rapid change as China installs very large capacities of caprolactam (the primary raw material for Nylon 6) as well as polymer and fibers. Honeywell’s main activity has been the production of caprolactam, in a very cost effective operation, and the supply of Nylon 6 polymer for fibers (mainly in the carpet industry in the US) and for Engineering Plastics.

Alasdair Carmichael
Carmichael International
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