Accidental shutdown to cost Nova US $11 mln

22-Jun-06
An accidental shutdown at it's ethylene plan in Corunna, Ont., will cost Nova Chemicals Corp. an estimated US$11 mln in lost income. The Corunna facility produces over 1.6 million tpa of basic petrochemicals, and provides upto 40% of Canada's primary petrochemical supplies. The facility has suffered minor damage in the shutdown, when on Monday, a contract worker accidently flipped a switch meant to shut down the massive facility in case of an emergency. The bright side of the situation was there was no safety hazard at the plant. Abruptly shutting down of the plant will cost the company in terms of lost profits due to lost production and repair costs in getting the facility up and running again over the next two weeks. Nova expects the plant will be back up to full production within two weeks and has declared "force majeure" on propylene and other pipeline-delivered co-products, until the plant returns to normal operating rates and inventory levels. Force majeure is declared when a company can't fulfill its contracts due to circumstances beyond its control. Earlier this year, Nova Chemicals suffered a US$70 mln after-tax loss when its Corunna plant was shut down for several months because of equipment problems.
  More News  Post Your Comment
{{comment.Name}} made a post.
{{comment.DateTimeStampDisplay}}

{{comment.Comments}}

COMMENTS

0

There are no comments to display. Be the first one to comment!

*

Email Id Required.

Email Id Not Valid.

*

Mobile Required.

*

Name Required.

*

Please enter Company Name.

*

Please Select Country.

Email ID and Mobile Number are kept private and will not be shown publicly.
*

Message Required.

Click to Change image  Refresh Captcha
Large capacity chemical storage tanks

Large capacity chemical storage tanks