INEOS announces expansion of styrenics joint venture with NOVA Chemicals
INEOS announced today that it has signed a letter of intent with NOVA Chemicals Corporation to expand on the parties’ existing styrenics European joint venture so as to include North American assets of both companies. Under the terms of the proposed agreement, INEOS will contribute its North American styrene and polystyrene assets and NOVA Chemicals will contribute its STYRENIX unit and other styrenics polymer assets to a 50:50 joint venture arrangement. The STYRENIX unit includes NOVA Chemicals North American styrene and solid polystyrene assets.
The new joint venture assets will also include solid polystyrene-based NAS®, ZYLAR®, and DYLARK ® polymers from NOVA Chemicals and the Avantra® specialty products of INEOS.
“This is an important next step in the development of our styrenics business and allows us to build on the success that we have experienced in Europe through our partnership with NOVA Chemicals” said Calum MacLean, Chairman of INEOS Styrenics and a Director of INEOS Group Limited. “The expanded joint venture allows for further cost reductions and efficiencies in our joint global styrenics business to create enhanced value and profitability.”
The transaction to expand on the existing joint venture arrangement is expected to close in the third quarter of 2007, subject to approvals and completion of definitive agreements. Following closing, the global joint venture arrangement is forecasted to have sales of approximately $3.5 billion per year and a leading market position for styrene and solid polystyrene in North America.
INEOS will retain full ownership of its styrene business in Europe with a styrene manufacturing plant in Marl, Germany.
INEOS is a rapidly growing manufacturer of petrochemicals, specialty and intermediate chemicals and polymers. It comprises 18 businesses each with a blue chip, chemical company vintage, and its production network includes 68 manufacturing facilities in 17 countries throughout the world. In 2006, INEOS had approximately 15,200 employees and sales of more than $33 billion.
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Avantra® is a registered trademark of INEOS
NAS® and DYLARK ® are registered trademarks of Nova Chemicals Inc., and ZYLAR® is a registered trademark of NOVA Chemicals (Canada) Ltd./NOVA Chimie (Canada) Ltée.; authorized use/utilisation autorisée.