SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) February 3, 1999
E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-815 51-0014090
(State or Other Jurisdiction (Commission (I.R.S Employer
of Incorporation) File Number) Identification No.)
1007 Market Street
Wilmington, Delaware 19898
(Address of principal executive offices)
Registrant's telephone number, including area code: (302) 774-1000
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Item 5. Other Events
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In connection with Debt and/or Equity Securities that may be offered
on a delayed or continuous basis under Registration Statements on Form S-8
(No. 33-53327, No. 33-61339 and No. 33-60069), we hereby file the following
press release.
DuPont Contact: Anne McIntosh
(302) 992-2972
Teijin Contact: Mr. Y. Utsunomiya
Japan 81-3-3506-4407
DuPont and Teijin Announce Plans to Form a Joint Venture for Their Global
Polyester Films Businesses
WILMINGTON, Del., Feb. 3 -- DuPont and Teijin Limited have signed a
letter of intent (LOI) to form a global joint venture to produce and sell
polyethylene terephthalate (PET) and polyethylene naphthalate (PEN) polyester
film. The 50/50 joint venture provides DuPont and Teijin with a world-class,
integrated global platform for supplying differentiated, value-added polyester
film products. DuPont will receive cash, reflecting the difference in the
values of the respective businesses; the amount was not disclosed.
"This joint venture is the second step of an innovative, multi-part
plan for polyester in which DuPont joins forces with an extremely competent
partner, reduces its investment and, ultimately, increases shareholder value,"
said DuPont Chairman and CEO Charles O. Holliday, Jr. "The alliance announced
today greatly strengthens our global market leadership position in polyester
films, making it extremely viable and sustainable for the long run. This is
an important part of our ongoing strategy to reshape our polyester businesses,
which began last year with the signing of a letter of intent to form a joint
venture with Alpek S.A. de C.V. to produce and market polyester staple fiber."
The new venture with Teijin, including combined sales of about
$1.4 billion (160 billion yen) and production capacity over 300,000 tons per
year, creates a clear global industry leadership position in polyester films.
It provides for the unrestricted flow of technology between the two companies
and leverages DuPont's strengths in the U.S., Europe and China with Teijin's
strengths in Japan and Asia Pacific.
"This venture strengthens our technology base, global reach, and the
long-term health and sustainability of our polyester films' business
worldwide," said Francine Cheeseman Shaw, vice president and general manager
- -- DuPont Polyester Films.
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"We value our relationship with Teijin based on several joint
ventures, such as our existing joint venture which produces magnetic media
films. Its success, coupled with complementary capabilities, goals and shared
values led to our decision to be global partners. We have the highest respect
for the people of Teijin and their capabilities. Their technology and product
innovation are excellent. Together our joint venture will focus this new
level of capability and commitment on the needs of our customers, bringing
them outstanding customized solutions to meet their needs for innovative film
products worldwide," she added.
"Teijin's basic strategy for polyester films is to be a major global
player, offering high-quality, high-performance, innovative products. The
business we are creating by the joint venture will be focused on growth, have
true global reach, local access and a technology base unmatched by any other
films' supplier," said Teijin Limited President and CEO, S. Yasui. "This will
allow us to provide the innovative solutions our customers want to help them
grow their businesses and we intend to do this better and faster than anyone
else," he added.
The venture will operate globally with a single face to the market,
recognizing and responding to regional market requirements. Included in the
venture is the existing Teijin DuPont Films Ltd. joint venture with operations
in Circleville, Ohio, and Contern, Luxembourg.
"The alliance will offer customers a more competitive product offering
than either company could do alone by combining global research and
development and production facilities with an unparalleled market position,"
said Teijin Limited General Manager for Plastics and Films Group,
N. Nagashima.
Under the LOI, Teijin's sales operations will be incorporated into the
joint venture upon its formation; however, Teijin will continue its Japanese
manufacturing and technical development operations until 2001. During the
interim, these operations will be used exclusively to serve the joint venture.
Thereafter, all Teijin operations will be included in the joint venture.
DuPont Polyester Films, the world's leading supplier of polyester
films, specializes in films and related products for the specialty,
industrial, packaging, electrical and electronics markets. Brand names
include DuPont "Melinex" and "Mylar" polyester films, "Kaladex" PEN films, and
"Cronar" polyester photographic base film. The business includes joint
ventures with DuPont-Hongji Films Foshan Co., Ltd., in China and Teijin-
DuPont Films.
Founded in 1802, DuPont is a global research and technology-based
company committed to better things for better living. DuPont serves worldwide
markets including food and nutrition; health care; agriculture; fashion and
apparel; home and construction; electronics; and transportation. The company
operates in about 70 countries and has 83,000 employees.
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Teijin is a leading global manufacturer of PET polyester film for
high-end uses, such as advanced magnetic media, laminated film for beverage
cans and electronic materials. It has two plants in Japan, a new plant in
Indonesia and the Teijin DuPont Films joint venture in the U.S. and
Luxembourg. Teijin also was the first in the world to commercialize
polyethylene napthalate (PEN) polyester films and, today, is the leading
global producer of PEN films used for high-density data cartridges and
advanced photo systems. Brand names include "Teijin" "Tetoron" PET polyester
film and "Teonex" PEN polyester film.
Teijin Limited is a major multinational enterprise offering fibers,
chemicals and plastics, pharmaceuticals and medical products and diversified
products. Teijin is using its proprietary technologies to expand into areas
such as health-care products and services, advanced materials and information
media.
Forward-Looking Statements: This news release contains forward-
looking statements based on management's current expectations, estimates and
projections. All statements that address expectations or projections about
the future, including statements about the Company's strategy for growth,
product development, market position, expected expenditures and financial
results, are forward-looking statements. Some of the forward-looking
statements may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more
fully elsewhere in this release and in DuPont's filings with the Securities
and Exchange Commission, particularly its Current Report on Form 8-K filed on
November 13, 1998 as well as others, could cause results to differ materially
from those stated. These factors include, but are not limited to changes in
the laws, regulations, policies and economic conditions of countries in which
the company does business; competitive pressures; successful integration of
structural changes, including acquisitions, divestitures and alliances;
failure of the company or related third parties to become Year 2000 capable;
research and development of new products, including regulatory approval and
market acceptance.
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2/3/99
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
E. I. DU PONT DE NEMOURS AND COMPANY
(Registrant)
/s/ D. B. Smith
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D. B. Smith
Assistant Controller
February 3, 1999
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