Nova Chemicals is a focused commodity chemical company, producing styrenics and olefins/polyolefins at 18 locations in the US, Canada, France, the Netherlands and the UK. Nova Chemicals holds a 38% interest in methanol giant, Methanex. Its styrenics business is held in a joint venture with INEOS called INEOS Nova, and it also has a joint venture in polyethylene wire and cable with Borealis called Nova-Borealis Compounds LLC.
History
Nova Chemicals' roots stem back to the 1950's when it began life as The Alberta Gas Trunk Line Company. In July 1998, Nova Chemicals was launched as an independent company.
Company movements
On 3 July 2009, International Petroleum Investment Co (IPIC) closed its $2.3bn (€1.66bn) takeover of Nova Chemicals.Please see IPIC closes on $2.3bn takeover of Canada's Nova Chemicals on ICIS news.
On 30 June 2009, under approval of the Investment Canada Act the planned $2.3bn (€1.6bn) takeover of Nova Chemicals by IPIC was extended to 6 July 2009.
In June 2009, regulatory authorities in the US and China cleared the $2.3bn (€1.6bn) takeover of Nova Chemicals by IPIC. Please see US, China approve IPIC’s takeover of NOVA Chemicals .
In May 2009, the European Commission cleared the purchase of Nova Chemicals by IPIC.
The deal was previously announced in February 2009.
Nova Chemicals is divided into two business units and one major joint venture:
Olefins/Polyolefins
This business produces ethylene, polyethylene, chemical and energy co-products, including all the olefin and aromatic petrochemical building blocks. It has four Canadian manufacturing sites with the capability of producing 6.6bn lbs/year of ethylene and 3.7bn lbs/year of polyethylene resins. Nova claims that the Joffre, Alberta facility is the largest, and one of the lowest-cost, ethylene/polyethylene production facilities in the world.
Performance Styrenics
Performance Styrenics includes ARCEL advanced foam resin, expandable polystyrene (EPS) business and several downstream ventures that market EPS-based product and technology innovations around the world.
Nova's performance styrenics products include:
ARCEL advanced foam resin — used as a packaging material for damage-sensitive goods such as electronics, flat-panel televisions and furniture.
DYLARK resins — specified in automotive applications, such as soft instrument panels, structural consoles and roof-mounted LCD video supports.
DYLITE resin — designed for moulding disposable products such as drinking cups, takeout containers and ice cream containers.
Expandable polystyrene — from the traditional foam beverage cup to innovative end-use products.
INEOS Nova joint venture
The joint venture is claimed to be the largest styrene/polystyrene manufacturer in North America and the largest polystyrene/EPS manufacturer in Europe. INEOS NOVA has taken action to lower costs, including the shutdown of two polystyrene plants which represent 5% of North American capacity.
The joint venture also acquired the production rights to Sterling Chemicals’ Texas City styrene plant and Sterling Chemicals subsequently shut down the plant, eliminating 11% of North American capacity.
Nova Chemicals
Strategy & Financial Highlights
Since its founding in 1998, Nova has utilised a five-point strategy: to focus on plastics and chemicals; be the low-cost provider; invest only for high returns; build upon and add to its competitive advantage; and be an industry consolidator. (Edited from: “Letter to shareholders”). ICIS also provides you with key financial data listed in table form.
More about Nova Chemicals Strategy & Financial Highlights
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