NOVA received $15m claim payment for 2012 Canada PE plant outage

07 May 2013 20:45  [Source: ICIS news]

HOUSTON (ICIS)--NOVA Chemicals has received $15m (€11m) in initial claim payments during the first quarter, which will help compensate the company for business interruption and property damage caused by a 2011 outage at its low-density polyethylene (LDPE) plant at Moore in southern Ontario, the CEO said on Tuesday.

An outage in December 2011 caused the company to declare force majeure on LDPE from Moore. In April 2012, the company ended the force majeure for a limited number of LDPE grades, and the plant was running at reduced rates.

The plant is now running at normal rates.

The final insurance claim will take some time to complete, said Randy Woelfel, NOVA CEO. Woelfel made his comments during an earnings conference call. He did not specify how long the final claim should take.

It should cover some portion of last year's financial losses, he said.

Earlier this year, the company estimated that the outage cost the company $90m-95m in operating income in 2012.

($1 = €0.76)

By: Al Greenwood
+1 713 525 2645

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