NOVA to expand JV with INEOS

02-Apr-07

In a move that will significantly reduce costs and participate in industry consolidation, NOVA Chemicals Corporation has signed a letter of intent with INEOS to expand the existing European joint venture between the two companies' to include North American assets. Under the terms of the proposed agreement, the newly expanded 50:50 joint venture will include NOVA Chemicals' STYRENIX unit and other styrenic polymer assets. The STYRENIX unit includes NOVA Chemicals' North American styrene and solid polystyrene assets, as well as the company's interest in the existing European joint venture with INEOS, called NOVA Innovene. INEOS will contribute its North American styrene and polystyrene assets, as well as its interest in the existing NOVA Innovene European joint venture. The expanded joint venture will also include solid polystyrene-based NAS, ZYLAR and DYLARK polymers from NOVA Chemicals and the AVANTRA specialty products of INEOS. The transaction to form the expanded joint venture is expected to close in Q3-2007, subject to approvals and completion of definitive agreements. The expanded venture is expected to have revenues of approximately US$3.5 bln pa. NOVA Chemicals will retain full ownership of its olefins/polyolefins unit, industry-leading North American expandable polystyrene business, ARCEL advanced foam resin, and new expandable polystyrene-based business ventures.