Canada NOVA picks Ontario for new PE plant

08 December 2017 19:51 Source:ICIS News

HOUSTON (ICIS)--NOVA Chemicals has chosen Sarnia in Ontario province to build a new linear low density polyethylene (LLDPE) plant, the Canadian polyolefins producer said on Friday.

PE is used to make plastic bags. (Source: Dinendra Haria/REX/Shutterstock)

NOVA will also expand the capacity of the Corunna cracker at Sarnia by 50% to provide feedstock for the new PE plant, the company said. The value of the new PE plant and cracker expansion in Ontario will exceed Canadian dollar (C$) 2bn ($1.6bn), NOVA said.

The plant will have a capacity of 950m lb/year (430,000 tonnes/year), and it should start operations in late 2021, NOVA said. The plant will be the second to feature NOVA's Advanced SCLAIRTECH technology.

The first is in Joffre, Alberta province. NOVA began shipping material from that plant early in 2017.

The company had been considering the new plant for several years. It held back on making a decision because of the glut of new projects being undertaken in North America, which caused construction costs to increase.

In addition to the Ontario project, NOVA, Total and Borealis may decide to build a new 625,000 tonne/year PE plant in Bayport, Texas, under a joint venture. The companies could soon make a final investment decision on the project.

($1 = C$1.29)

By Al Greenwood