The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

AlliedSignal-SYSKO Begins Operations in Asia

25 January 1999

AlliedSignal-SYSKO Begins Operations in Asia

    SEOUL, Korea--Jan. 25, 1999--AlliedSignal Inc. today announced the consolidated Asian fibers company formed last October as a joint venture between AlliedSignal Inc., and three Korea-based companies, Sam Yang Corp., Kohap Ltd., and S.K. Chemical Ltd., has initiated operations as AlliedSignal-SYSKO, Ltd. AlliedSignal has a majority ownership in the new company with Sam Yang Corp. having the majority interest among the three Korean members.
    "AlliedSignal-SYSKO will be fully operational by the end of this month, producing a broad range of value-added, high tenacity performance fibers for the South East Asian market," said Fred Festa, Vice President of AlliedSignal Performance Fibers.
    The company also has decided to idle approximately 12,000 MT of capability over the next couple of months and is exploring improvements that can be made to enable the idled equipment to shift from the production of polyester to nylon, such as for automobile, airbags or other higher-value products. The idled equipment was originally dedicated to the production of polyester for lower-value non-tire applications, where demand levels are lower.
    Concurrently, AlliedSignal announced that it is considering the startup of the next phase of its patented DSP(TM) Tire Fiber expansion in Longlaville, France. The spokesperson for AlliedSignal indicated that it anticipates that this latest expansion will start up in the year 2000.
    According to Harvey Rowan, Director of Business Development: "The capacity initiatives are a result of over capacity that currently exists in Asia for non-tire applications caused by overbuilding in recent years and the need for additional DSP Tire Fiber in Europe as a result of the continued displacement of rayon."
    The products manufactured by the joint venture will be used in a wide range of applications including, luggage, outdoor upholstery and awnings; mechanical rubber goods such as conveyer belts; cordage for a wide range of ropes and hoses, and narrow fabrics, such as webbing for seat belts and harness slings. AlliedSignal is North America's leading supplier of materials for the manufacture of seat belts.
    Robert Preston, AlliedSignal-SYSKO Chairman of the Board, said that the new joint venture is projected to add over $100 million of annual revenues from Asian operations by midyear 2000. Preston is also regional general manager of the parent operation.
    Jae-Hyoung Lee today was named President of AlliedSignal-SYSKO. He had been Sam Yang's Executive Director of Industrial Products. Hyun-Do Ki, previously with Sam Yang, was named Director of Sales; Jung Won Lee previously with Kohap, is the new General Manager of Marketing; and Gi Joong Yoon, formerly with S.K. Chemicals has become General Manager of Production and Inventory Planning.
    AlliedSignal Inc. is an advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. The company employs 70,400 people in some 40 countries.
    AlliedSignal was named the best diversified company by Forbes global magazine; the most admired global aerospace company by Fortune magazine; and one of the 100 best companies to work for by Fortune. Additional information on the company is available on the World Wide Web at http://www.alliedsignal.com.