16 November 2005 14:05 [Source: ICIS news]
COLOGNE, Germany (ICIS news)--Nova Innovene, the 50:50 joint venture between Nova Chemicals and Innovene, on Wednesday revealed a four-pronged strategy to turn around its beleagured polystyrene (PS) business.
"The polystyrene industry is still suffering from overcapacity, negative growth, feedstock volatility and poor margins," managing director Martin Pugh, said at the Fourth Aromatics and Derivatives conference.
The company, which was launched on ?xml:namespace>
Pugh said that Nova Innovene has started taking steps to address some of these issues and a first move was the announcement last month of the closure of its plant in
In addition, the company intends to take cost leadership in
The company was also looking at different pricing models in an attempt to gain some stability in the market but has yet to come up with an effective solution, he said.
Pugh said that the current negative growth for PS may improve slightly as substitution from cheaper polypropylene subsides. "Our expectation is that as propylene and PP prices rise, the impact from substitution will lessen," he said
Nova Innovene is more bullish for its performance products business with the higher grade of EPS for insulation (EPS Silver) and cups likely to be high growth areas.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections