23 March 2007 – Canada’s Nova Chemicals and Ineos of the UK are to extend their current European styrenics joint venture Nova Innovene into the North American market to create a grouping with sales of $3.5bn. The enlarged company would be the world number two in polystyrene and number four in EPS
Under the terms of the new agreement, Nova will place its recently named and separated Styrenix business, which includes its North American styrene and polystyrene interests together with its share of the existing European jv with Ineos, into the joint venture.
Ineos will contribute its North American styrene and polystyrene assets, largely acquired last year from BASF, as well as its own share of the European jv with Nova to the venture.
Also included in the expanded jv are Nova’s styrenic-based Zylar, Dylark and Nas polymers as well as Ineos’s Avantar speciality products.
Nova Chemicals ceo Jeff Lipton says the move, “provides a clear opportunity to significantly reduce costs and participate in industry consolidation.”
He added: “We expect the expanded jv to add value for our shareholders and we will continue to look for further consolidation opportunities.”
Nova Chemicals linked up with BP, then the owner of the Innovene business, in 2004 to form the European jv. The Canadian group will retain ownership of its olefins/polyolefins unit as well as its North American EPS business, Arcel foam resin and “new expandable polystyrene-based business ventures.”
