NOVA eyes $40m in cuts from STYRENIX JV plan

22 March 2007 17:16  [Source: ICIS news]

TORONTO (ICIS news)--Canada’s NOVA Chemicals expects more than $40m (€30m) in new synergies and cost cuts from the planned extension of its European NOVA Innovene joint venture to North America, chief financial officer Larry MacDonald said on Thursday.

 

NOVA announced earlier on Thursday that it plans to include its STYRENIX unit and other styrenic polymer assets in its European joint venture with INEOS.

 

“At the preliminary stage we anticipate over $40m in new synergies associated with this North American expanded joint venture,” MacDonald told an investor conference in New York.

 

The expanded entity would be a major global styrenics player, building on the success of INEOS and NOVA in Europe, he said. 

 

It would also look for further consolidation and expansion opportunities in the industry, MacDonald added.

 

MacDonald, responding to analysts’ questions, said NOVA did not expect any cash to be changed between it and INEOS as part of extending the joint venture to North America.

 

“There was no cash changed in the European joint venture, there is none contemplated here,” he said.

 

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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.

Printer Friendly