02 August 2002 15:51 [Source: ICIS news]
TORONTO (CNI)--Canada’s Nova Chemicals and BASF will supply each other with styrene monomer (SM) in North America and Europe, the companies announced Friday.
Under a long-term supply contract Nova will supply SM to BASF’s downstream business in the North American Free Trade Agreement (Nafta) region, while BASF will supply SM feedstock to Nova’s European downstream styrenics business.
In order to fulfil its commitment, Nova said it will debottleneck its Bayport, Texas SM plant to raise total production by 15% to 1.38m tonne/year.
Commented Chris Pappas, president of Nova’s styrenics business: "By improving our SM position, we'll lower costs, enhance our European supply security and add only minimal new capacity to the industry."
Fred Baumgartner, head of BASF’s styrenics division, said: "This joint approach to ensuring supply streams is mutually beneficial to both companies, and reflects a key component of BASF's Nafta strategy of pursuing strategic alliances that help strengthen our overall performance."
Nova is based in Calgary, Alberta. The company in June announced a restructuring of is styrenics businesses in North America and Europe.
BASF is based in Ludwigshafen, Germany, and its North American affiliate, BASF Corporation, is based in Mount Olive, New Jersey.
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