FOLEY, Ala. — Citing the need to reduce costs, generate cash flow and operate efficiently, Solutia Inc. announced this week that it has agreed to sell its nylon business to a New York-based private equity firm.

The sale includes the Foley manufacturing plant that has seen a number of layoffs in recent years. The Foley plant serves as a packaging and process facility for Solutia’s manufacturing plant in Pensacola.

According to a news release issued this week by Solutia’s corporate office in St. Louis, Mo., the sale involves all five of the company’s nylon manufacturing plants, management and employees. Besides Foley and Pensacola, those plants are in Alvin, Texas; Decatur, Ala.; and Greenwood, S.C.

According to details of the sale when it becomes final, SK Capital Partners II, L.P., the private equity firm, will give Solutia $50 million in cash and a 2 percent equity stake in a new company formed to “hold substantially all of the assets of the nylon business.” Solutia will also receive $4 million in deferred cash payments to be paid in annual installments of $1 million beginning in 2011.

According to the release, a “minimum level of working capital” will be delivered at closing, that approximately $100 million lower than the actual reported balance at the end of 2008.

“The affiliate of SK Capital will assume substantially all of the liabilities of the nylon business, including employee and pension liabilities relating to the active employees of the business, and environmental liabilities,” the release said.

Late last year, citing an unprecedented decline in market conditions relating to the nylon business, Solutia temporarily laid off 58 employees at the Foley plant and 12 employees permanently. Prior to those layoffs, a Solutia spokeswoman said the Foley plant employed 110 people.

In June 2008, Solutia announced it was exploring “strategic alternatives” for its nylon business, including possible sale.