UpdateNOVA Chemicals says integration plans are up to its owner IPIC

15 April 2011 18:17  [Source: ICIS news]

(updates and releads with comments from NOVA Chemicals)

TORONTO (ICIS)--NOVA Chemicals said on Friday that any plans to integrate the Canadian-based petrochemicals major with Austria’s Borealis were up to Abu Dhabi’s International Petroleum Investment Co (IPIC), which owns both companies.

“Any future integration of NOVA Chemicals and Borealis is the prerogative of our owners,” NOVA spokeswoman Wendy Lomicka told ICIS in an email.

She was referring to a report by Abu Dhabi newspaper The National that cited IPIC managing director Khadem al Qubaisi as saying IPIC would consolidate the two chemicals businesses “and bring NOVA to Abu Dhabi to do some projects”.

The plans would probably be implemented during the next two years, al Qubaisi told the newspaper.

In addition to his role as IPIC managing director, al Qubaisi is chairman of NOVA Chemicals’ board of directors and chairman of the supervisory board at Borealis.

NOVA and Borealis are part of IPIC, along with Austria’s OMV and Spain’s CEPSA.

IPIC acquired NOVA Chemicals in 2009 for $2.3bn (€1.6bn).

Following the acquisition, Gerhard Roiss, the then-deputy CEO of Austria’s energy and petrochemicals firm OMV, became NOVA’s chairman as OMV was taking on a role in steering NOVA.

However, last year al Qubaisi took over as NOVA chairman from Roiss, who became OMV’s CEO.

Lomicka added that NOVA Chemicals was focused on acquiring new sources of cost competitive feedstock for both its western and eastern Canadian ethylene (C2) and polyethylene (PE) facilities to fully utilise assets and plan for future growth.

A spokesperson for Vienna-based petrochemicals and plastics major Borealis said the company could not comment on IPIC’s plans.

($1 = €0.69)

For more on NOVA Chemicals and other producers, visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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