Restructuring at Nova Chemicals

27-Jun-06

In a move towards cost reduction and improved efficiency, Canadian-U.S. petrochemicals producer Nova Chemicals Corp. plans to cut 375 jobs and spin off its styrene operations into a separate company- Styrenix. Nova, with major operations in Alberta and southwestern Ontario, plans to shift its styrene monomer and solid polystyrene assets in North America and it's interest in a European joint venture into the new entity Styrenix. This will result in company-wide cost cutting of US$65 million pa, a tremendous saving as compared to the previously announced savings of US$15 million from the planned closure of the company's plant in Chesapeake. Styrenix unit will include: Bayport, Tex. and Sarnia, Ont. styrene monomer production plants Solid polystyrene manufacturing operations in Montreal, Decatur and Springfield Nova's interest in the European JV with Ineos called Nova Innovene, a venture that restructured operations and shut down production in the United Kingdom and France last year.