Ineos Nova to shut down Montreal polystyrene plant by end of year

[mtlurb]

Oct 10, 2007 9:28:00 AM MST

Ineos Nova to shut down Montreal polystyrene plant by end of year (Nova-Chemicals)

 

 

 

JOLIET, Ill. _ Ineos Nova, a joint venture between Nova Chemicals Corp. (TSX:NCX) and global petrochemicals giant Ineos, will shut down a Montreal polystyrene production facility by the end of the year.

 

The closure will cut six per cent of the joint venture‘s polystyrene production and is part of a restructuring that aims to achieve about $50 million in annual synergies.

 

It was not immediately known how many jobs, if any, are affected by the closure.

 

“Shutting down the Montreal site will remove high-cost capacity and enable us to consolidate production at our most efficient manufacturing sites,‘‘ Kevin McQuade.

 

“We are committed to providing our customers with an effective transition during the coming months.‘‘

 

In March, Nova announced the deal with global chemicals giant Ineos to expand the two companies‘ existing European styrene joint venture to include North American styrene and polystyrene plants in Canada and the United States.

 

Styrene and polystyrene are widely produced petrochemicals used in making coffee cups, egg cartons, foam meat trays, toys and many other products.

 

The joint venture company is expected to have revenues of about US$3.5 billion a year and will be the world‘s biggest producer of styrene and polystyrene _ widely produced petrochemicals used in making coffee cups, egg cartons, foam meat trays, toys and many other products.

 

Nova keeps full ownership of its other major divisions, which make olefins and polyolefins, chemicals used in packaging, electronics, aviation, manufacturing and other sectors, and expandable polystyrene.