NOVA continues to run Ontario LDPE plant at reduced rates

08 May 2012 18:17  [Source: ICIS news]

HOUSTON (ICIS)--NOVA Chemicals will continue to run its 170,000 tonne/year low density polyethylene (LDPE) unit at Mooretown in southern Ontario at reduced rates, likely through the second quarter of 2013, the CEO of the Canada-based petrochemicals major said on Tuesday.

"We have modified the plant to run at reduced rates," CEO Randy Woelfel said during a first-quarter conference call. "The plant is now operating well in this mode."

The outage, which took place in early December 2011, caused the company to declare force majeure on LDPE from Mooretown.

In April, the company ended the force majeure for a limited number of LDPE grades. However, for the balance of LDPE material supplied by the plant, the force majeure is expected to remain in effect until full operations are restored at the facility in the second quarter of 2013, the company said.

In the meantime, the company continues to perform "extensive repairs" to the facility, Woelfel said.

The impact of the outage on first-quarter operating income was in the range of $15m-20m (€11.6m-15.4m), after mitigation efforts, which included selling excess ethylene to third-party customers, the company said.

Woelfel said the company remains committed to its LDPE business.

($1 = €0.77)

By: Michelle Klump
+1 713 525 2653

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