Canada’s Nova Chemicals revamps styrenics, cuts 37 jobs

28 June 2002 16:25  [Source: ICIS news]

TORONTO (CNI)--Canada's Nova Chemicals said Friday it will restructure its styrenics division with expansion of expandable polystyrene (EPS) in the US and closure of solid polystyrene (SPS) reactors in the US and Europe with a loss of 37 jobs.

In a statement issued today, Nova said it will:

• Double capacity for its Arcel EPS at Beaver Valley, Pennsylvania. Nova will start work on the Arcel expansion in the third quarter. Arcel is a high-margin product used mainly in automotive applications and in the packaging of electronic products.
• Debottleneck capacity for Nova’s Dylark EPS at Beaver Valley during the fourth quarter to boost output by slightly more than 9000 tonne/year. Dylark is a styrene monomer (SM)/maleic anhydride (MA) engineering resin used in automotive applications.
• Shut down effective 1 September its SPS suspension reactors at Breda, The Netherlands, and at Chesapeake, Virginia. This will cut 37 jobs and remove 79 000 tonne/year of capacity from oversupplied SPS markets.
• Focus on lowering emissions of volatile organic compounds (VOCs). Nova has a patented VOC-free technology, and it already launched its Ultra-Low Pentane EPS grades, it said.

Chris Pappas, president of Nova’s styrenics business, said: "Nova Chemicals has created one of the largest styrenics businesses in the world. Now, we will be moulding it into one of the most efficient and innovative styrenics businesses in the world."

Pappas described the restructuring as "just the first phase of what promises to be a continued effort throughout the year." He said Nova will make further announcements during the course of the year.

Shares of Calgary, Alberta-based Nova were up slightly at Can$33.90 ($22.40/Euro22.80) in early trading Friday on the Toronto Stock Exchange. The company’s 52-week high and low are Can$40.10 and Can$23.20, respectively.

By: Stefan Baumgarten
+1 713 525 2653

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