Nova sees positives in Dow Canada’s plant closures

08 September 2006 14:34  [Source: ICIS news]

TORONTO (ICIS news)--Canada’s Nova Chemicals expects to gain customers and sales following Dow Chemical’s plant closures in Ontario, a company spokeswoman said on Friday.

 

“Short term, we are working through the details of any impacts on Nova Chemicals but overall we expect the impact to be positive in terms of customers and market share,” Stephanie Franken, a Pittsburgh, Pennsylvania-based Nova spokeswoman told ICIS news.

 

Dow’s closures of its polyethylene and polystyrene assets at Ontario’s petrochemicals hub in Sarnia will tighten markets, she added.

 

Dow said last week it will close all its manufacturing plants in Sarnia by the end of 2008 due to the unavailability of affordable feedstock following to the suspension of ethylene shipments on the Cochin pipeline in March. The Sarnia closures affect plants producing low density polyethylene (ldPE), polystyrene, acrylate latex and propylene oxide derivatives.

 

Asked whether Nova could have supplied ethylene to Dow in Sarnia, Franken said that while Nova has small volumes of ethylene available for spot sales at its Corunna flexi-cracker near Sarnia it does not have the production capacity to expand ethylene sales.

 

Commenting on the overall feedstock situation in Canada, Franken said Nova believes that Alberta represents the best longer-term opportunity for significant growth of the petrochemicals industry in North America. “We are confident in the future of the petrochemicals industry in Canada due to its significant natural resource base and its strategic, advantaged position to access potential feedstock,” Franken said.


By: Stefan Baumgarten
+1 713 525 2653



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