FRIBOURG, SWITZERLAND & BUCHAREST, ROMANIA, December 18 /CNW/ - INEOS
NOVA and SEEA Polymers today announced they have signed a letter of intent to
form a 50/50 joint venture to build and operate a new expandable polystyrene
(EPS) plant in Romania. The proposed facility will have production capacity of
100 KT per year and is expected to start operations by late 2009.
"This new plant will be located in the heart of one of the highest growth
areas for EPS in the world," said Martin Pugh, Managing Director Europe for
INEOS NOVA. "We expect this plant to manufacture a full range of products and
be the lowest cost producer of EPS in Europe."
Florin Andrei, CEO of SEEA Polymers said, "We are pleased to bring the
plastics industry expertise of our fast growing Romanian based company to this
joint venture with INEOS NOVA, the European EPS market leader. We believe the
combination will enable the new joint venture to quickly establish leadership
in the region."
Growth rates for EPS consumption in the region are projected to continue
to be more than 10 percent per year. The proposed plant will be located on a
site owned by SEEA Polymers in Medgidia, Romania, near the Black Sea. The
location will enable the new plant to enjoy reliable, low-cost logistics.
Following completion of final market and capital plans the two companies
expect to negotiate and finalise a binding agreement by the end of the first
quarter of 2008.
INEOS NOVA is committed to being recognised as the global leader in
styrenics. Our employees manufacture and market styrene and styrenic polymers
with a dedicated focus on health, safety, security and environmental
stewardship. INEOS NOVA is a joint venture of INEOS and NOVA Chemicals.
Visit us on the internet at www.ineos-nova.com
SEEA Polymers is an entrepreneurial plastics manufacturing and processing
company created by a group of Romanian investors led by Mr Florin Andrei. Mr
Andrei has extensive experience in the domestic and regional petrochemical
market in his previous position as Chief Executive Officer of Rompetrol
Petrochemicals. Before joining Rompetrol he held a number of positions over 10
years at Dow Corning and The Dow Chemical Company.
The information in this news release contains forward-looking statements
concerning INEOS NOVA's and SEEA Polymers' proposed 50/50 joint venture to
build and operate a new EPS plant in Romania, including statements regarding
the plant's expected production capacity, start-up date, product offerings and
costs of production, the projected growth rate for EPS consumption in the
plant's region and the intention of the parties to finalize a binding
agreement. By their nature, forward-looking statements require INEOS NOVA to
make assumptions and are subject to inherent risks and uncertainties. There is
significant risk that predictions, forecasts, conclusions and projections will
not prove to be accurate, that INEOS NOVA's assumptions may not be correct and
that actual results may differ materially from such predictions, forecasts,
conclusions or projections. INEOS NOVA's forward-looking statements are
expressly qualified in their entirety by this cautionary statement. In
addition, the forward-looking statements are made only as of the date of this
news release, and INEOS NOVA undertakes no obligation to publicly update these
forward-looking statements to reflect new information, subsequent events or
For further information:
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