Jeffry Quinn, the new chief executive of Solutia Inc. took up his post on 6 May 2004 and unveiled his vision for the future in a meeting with employees. “We have to change and deliver on our business …
Jeffry Quinn, the new chief executive of Solutia Inc. took up his post on 6 May 2004 and unveiled his vision for the future in a meeting with employees. “We have to change and deliver on our business plan. That“s the ticket to the future. That“s the key to having a future,” Quinn said. Through the Chapter 11 Bankruptcy Court, Solutia hopes to jettison millions of dollars in legacy liabilities which it inherited when the old Monsanto Co. spun off Solutia in 1997. It will do so by negotiating with the new Monsanto, a 3-year-old agrochemical and biotech-seed company which is based, like Solutia, in St. Louis, Missouri. Meanwhile, at its HQ, Solutia will get rid of the culture it also inherited from Monsanto, Quinn said. The deliberation and structure that were appropriate for the massive Monsanto are a burden to the smaller firm. “I am going to try to be decisive and crisp in the way I make and execute decisions,” Quinn said. “(I hope) that will become a hallmark of the way Solutia does business.” The businesses at the heart of the company will be the performance-films division, which makes colored and impact-resistant films for glass in vehicles and buildings, and the unit making fluids for aircraft and industry. “Those businesses can definitely be the core, the engine, the driver” of the company, Quinn said. Facing a possible sell-off, among other options under consideration, are integrated nylon products and pharmaceutical services. “We have to change the cost structure of this business,” Quinn said. “We have to ask ourselves, “Is what we“re doing benefiting our customers?“ And if it“s not, let“s get rid of it.” Quinn, who was general counsel and then chief restructuring officer, revealed his plans and introduced himself as CEO in a staff meeting on 6 May 2004. He replaced John Hunter, who announced 5 May 2004 that he will retire 31 May 2004. At the meeting, Quinn recognized employee achievements and outlined pending benefit changes. The company froze its pension plan, which is underfunded by about USD 460 million, in order to save it, spokesman Glenn Ruskin said. It will ask employees to pay a greater share of health-care costs in 2005. The challenge of remaking Solutia “will be one that we can rise to together,” Quinn said. Tough decisions are ahead for Solutia, Quinn said. The company could emerge from bankruptcy free of old obligations, but will probably retain some. It could become private or merge. Quinn said his plans are for Solutia to remain in St. Louis. “There are a wide range of opportunities or alternatives out there,” he said. In the end, the company must do what is in the best interests of its creditors and employees. Despite the cuts ahead, Quinn said, he plans to be a builder. “This is an organization that has a proud history … great people and a great business. (It) has been impacted by circumstances somewhat beyond its control,” he said. “But it will persevere .. and emerge as a vibrant organization.”