INEOS NOVA joint venture will acquire rights to Sterling styrene production
Pittsburgh, PA - NOVA Chemicals Corporation (NYSE, TSX: NCX) today announced that it has secured exclusive rights to the styrene production from Sterling Chemicals Inc.’s Texas City, Texas, manufacturing facility on behalf of its pending joint venture with INEOS. The INEOS NOVA joint venture has received U.S. regulatory approval and will be assigned the rights when the joint venture is operational, which is expected to be October 1, 2007. The $60 million cost of the transaction will be fully funded by the INEOS NOVA joint venture from cash on hand.
“This agreement will allow our joint venture with INEOS to rapidly reduce costs and optimize production,” said Jeffrey M. Lipton, President and Chief Executive Officer of NOVA Chemicals. “We believe this is a very significant step that will accelerate a return to financial health for the styrenics chain.”
Sterling’s Texas City facility has 1.7 billion pounds of annual styrene production capacity, which represents approximately 11% of North American capacity and 3% of global capacity.
NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.
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