Courtaulds plc
In 1990, the company began pilot production of Tencel,[15] a brand of lyocell rayon. The production of lyocell does not use carbon disulfide, but is more expensive than viscose rayon.[16][17] In January 1993, the Tencel plant in Mobile, Alabama, US reached full production levels of 20,000 tons per year, by which time Courtaulds had spent £100 million and 10 years on Tencel development. Tencel revenues for 1993 were estimated as likely to be £50 million.[15]
In 1991, the company closed a viscose plant in Calais, France, allowing its other plants to boost output to 93% capacity, compared with an industry average of 75%. The share price doubled in the first three years following the demerger. CEO Sipko Huismans had focused the company on rationalisation and cost cutting, saying "We have to cut costs. We can't count on sales growth to pay us more or to allow us to buy more of our favorite things."[15]
In 1993 the company employed 23,000 and had £2 billion in annual revenue, with 30% of revenue from the United States and 40% from Europe.[15]
Courtaulds plc sought to merge with Akzo Nobel, which the EU approved subject to the sale of Courtauld's aerospace business.[18][19] In 1998 it merged with competitor Akzo Nobel.[18] The name "Courtaulds" disappeared.[20]
Akzo Nobel combined the Tencel division with other fibre divisions under the Acordis banner, then sold them off to private equity (CVC Capital Partners). In 2000, CVC sold the Tencel division to Lenzing AG, who combined it with their "Lenzing Lyocell" business, but maintained the brand name Tencel.[13] At this time "Tencel" production was at 80,000 tonnes per year.[13]
In September 2000, Courtaulds Fibers Inc. was found guilty of negligence for polluting the environment outside its plant in Axis, Alabama, US with carbon disulfide. 1991 emissions were more than double those of the nine other plants in Alabama combined, and made minimal improvements to abide by the 1990 amendments to the United States' Clean Air Act. In Europe, Courtaulds had taken much more stringent emissions-reduction measures.[21]
Courtaulds Aerospace
In October 2000, PPG Industries announced it had agreed to buy Courtaulds Aerospace for $US512.5 million. Based in Glendale, California, US the aerospace business has annual sales of approximately $US240 million, employs 1,200 people. In the US it manufactures sealants in Glendale, California, US and Shildon, England; coatings and sealants in Mojave, California, US; glazing sealants at Gloucester City, New Jersey, US; and also coatings at Gonfreville, France. The business also operates 14 application-support centres in North America, Europe, Africa, Asia and Australia.[22]