Dear Solutia Wear-Dated® Upholstery Supporter:
On January 25, 2005, Solutia announced it is exiting the acrylic fiber business. This business has been challenged in recent years by the decline of U.S. textile markets as well as unprecedented and sustained increases in the cost of key raw material and energy inputs. Unfortunately, prospects for relief on either front are bleak. This action, while difficult, will help Solutia become a stronger, more viable company and help facilitate our exit from Chapter 11 bankruptcy.
Now that we have announced our exit from the acrylic fiber business, it is appropriate to clarify how we will manage Wear-Dated® Upholstery claims in the future. We realize our product will need some time to work its way through the value chain to the consumer. Therefore we will honor all valid Wear-Dated® Upholstery warranty claims on furniture sold to a consumer with a retail sale date of September 15, 2005 or earlier, for the full length of the applicable warranty period (i.e., 2 or 5 years, depending on the fabric). It is also important to note that our exit from the acrylic fiber business and resultant discontinuation of Wear-Dated® Upholstery does NOT impact our ongoing Wear-Dated® Carpet business.
Beginning September 16, 2005, any hang tag or other material on furniture bearing the Wear-Dated® name should be removed. Fabric on furniture sold after this date will not be covered by any warranty provided by Solutia, Inc.
We appreciate your business and support over the years and wish you every success for the future.
Sincerely,
Mark N. Bass, Business Director, Acrilan Acrylic Fibers
"A key component of our reorganization strategy is to re-shape our asset portfolio so that it consists of high-potential businesses leveraged on Solutia's core competencies that can consistently deliver returns in excess of their cost of capital. Exiting the acrylic fiber business, which in recent years has been rendered unprofitable due to low-cost foreign competition, declining global demand trends and sustained high raw material prices, is our most recent step forward in implementing this strategy."
- Jeffry N. Quinn, president and CEO of Solutia Inc.