Cytec Industries Inc. completed its $344 million acquisition of substantially all of Fiberite Inc.'s assets and liabilities Sept. 30 and has opted to base the merged business in Tempe, Ariz.
Specialty chemical company Cytec of West Paterson, N.J., is combining an existing subsidiary and most Fiberite operations to create Cytec Fiberite Inc., headed by Michael Molyneux as president. He was general manager of the subsidiary, Cytec Engineered Materials Inc., in Havre de Grace, Md.
In an Oct. 8 telephone interview, Molyneux said he is among eight of 13 supervisory and operating board members who will relocate to be near an Arizona facility that had served as Fiberite headquarters.
Carl W. Smith, named Cytec Fiberite vice president of operations, will oversee 10 plants. Each is an individual operating center. About three-fourths of the manufacturing occurs in the United States, and the remainder in Europe. Smith was Fiberite's president and chief operating officer.
Molyneux said Fiberite Chief Executive Officer James E. Ashton and Marketing Senior Vice President Jon B. DeVault have left the company.
Molyneux plans to merge the sales and research and development functions with ``central R&D'' located in the Tempe quarters.
He said Cytec's structural adhesives business will complement the large Fiberite prepreg business.
Prepregs account for 75 percent of Cytec Fiberite sales, adhesives for 20 percent and advanced structural materials and systems for 5 percent.
``With Fiberite, we get tremendous manufacturing efficiency and knowledge,'' Molyneux said.
Cytec acquired Fiberite from Stamford FHI Acquisition Corp. of Wilton, Conn., which had purchased the company Aug. 29 from DLJ Merchant Banking Partners LP of New York and Carlisle Group LP of La Jolla, Calif.
Outside the Cytec acquisition but also on Sept. 30, Stamford FHI sold Fiberite's space satellite business line and a broad license to Fiberite's structural prepreg technology to Hexcel Corp. of Stamford, Conn., for about $37 million. In August, government antitrust concerns prompted Hexcel to drop a bid to purchase most of Fiberite.
``Now, we will be on an equal footing in prepreg sales with Hexcel,'' Molyneux said. ``With two efficient manufacturers of prepreg, customers should get a better deal.''
Both operations feed, in particular, rising requirements for commercial aircraft.
Composites industry consultant Benjamin Rasmussen of Watchung, N.J., estimated that Fiberite and Cytec, if then combined, would have recorded 1996 prepreg sales of about $200 million to $230 million. He pegged Hexcel 1996 prepreg sales at $200 million to $225 million.
Rasmussen noted the large step down in sales to the next-largest players, American Materials & Technologies Corp.'s Culver City Composites Corp. subsidiary in Los Angeles and Mitsubishi Rayon Co. Ltd.'s Newport Adhesives & Composites Inc. unit in Irvine, Calif. He said each had 1996 prepreg sales in the range of $20 million to $35 million.
Fiberite reported 1996 sales of $218.8 million and employed about 800. A few dozen people will transfer to Hexcel. Now, Cytec Fiberite employs more than 1,200.