Mexico Alpek to buy NOVA’s EPS business; includes two US sites

HOUSTON (ICIS)–Alpek has signed an agreement to acquire the expandable polystyrene (EPS) business of NOVA Chemicals, the companies said on Monday.

The companies did not disclose the sales price. The deal should close in the fourth quarter.

The deal includes NOVA’s BVPV Styrenics subsidiary, which operates a complex in Monaca, Pennsylvania. That complex can produce 123,000 tonnes/year of EPS and 36,000 tonnes/year of ARCEL foam resins.

ARCEL is a copolymer of EPS and polyethylene (PE) used in protective packaging for items such as electronics, Alpek said.

The Monaca complex has a pilot plant as well, Alpek said.

The deal also includes NOVA’s EPS plant in Painesville, Ohio, that has a capacity of 45,000 tonnes/year, Alpek said.

NOVA said the sale would allow the company to focus on its olefin and PE business. Those plans include investing in plastic recycling, according to a statement by Luis Sierra, CEO. The deal will allow NOVA to strengthen its balance sheet.

Thumbnail image shows blocks made of EPS foam. Source: Imagine China/REX/Shutterstock