PITTSBURGH, November 29 /CNW/ - NOVA Chemicals Corporation (NYSE: NCX)
(TSX:NCX) today announced further progress by the INEOS NOVA styrenics joint
venture toward the target of U.S. $80 million per year in new joint venture
synergies by the end of 2008 as a result of INEOS NOVA's planned closure of
its Belpre, Ohio, polystyrene facility.
The Belpre facility closure, announced today in an INEOS NOVA news
release, will remove approximately four percent of North American polystyrene
capacity and reduce INEOS NOVA's fixed costs by approximately U.S. $9 million
per year. Combined with the previously announced closure of the Montreal,
Quebec, polystyrene facility, U.S. $14 million of total synergies have been
identified and five percent of North American polystyrene capacity has been
scheduled for shutdown since INEOS NOVA's startup October 1, 2007.
NOVA Chemicals will take charges totaling U.S. $65 million in the fourth
quarter of 2007. The company will take a non-cash asset write-down of
approximately U.S. $32 million related to the Belpre closure. NOVA Chemicals'
share of Belpre closure and severance costs that will be accrued by the joint
venture in the fourth quarter will be U.S. $3 million. These closure costs
will be funded by the joint venture from cash on hand.
INEOS NOVA recently acquired the exclusive rights to production from the
Sterling Chemicals Texas City, Texas, styrene plant. INEOS NOVA is in the
process of transferring Sterling's styrene customers to other INEOS NOVA
styrene plants and Sterling has announced plans to permanently shut down the
Texas City plant. As a result, NOVA Chemicals will take a charge of
approximately U.S. $30 million in the fourth quarter.
INEOS NOVA is the 50:50 styrenics joint venture between NOVA Chemicals
NOVA Chemicals produces plastics and chemicals that are essential to
everyday life. Our employees develop and manufacture materials for customers
worldwide that produce consumer, industrial and packaging products. NOVA
Chemicals works with a commitment to Responsible Care(R) to ensure effective
health, safety, security and environmental stewardship. Company shares are
traded on the Toronto and New York stock exchanges as NCX.
Visit NOVA Chemicals on the Internet at www.novachemicals.com
The information in this news release contains forward-looking statements,
including statements regarding: the target for new synergies for the INEOS
NOVA joint venture of U.S. $80 million per year by the end of 2008; the
closure of the Belpre facility, including that the closure will remove
approximately four percent of North American polystyrene capacity and reduce
INEOS NOVA's fixed costs by approximately U.S. $9 million per year; the
identification of U.S. $14 million of total synergies and the scheduled shut
down of 5% of North American polystyrene capacity since INEOS NOVA's startup
on October 1, 2007; and NOVA Chemicals' plans to take charges totaling U.S.
$65 million in the fourth quarter related to the Belpre closure and Sterling's
plans to shutdown its Texas City styrene plant. By their nature,
forward-looking statements require NOVA Chemicals 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 NOVA Chemicals' assumptions may not be correct and that actual
results may differ materially from such predictions, forecasts, conclusions or
projections. Some of the risks that could affect NOVA Chemicals' future
results and could cause results to differ materially from those expressed in
the forward-looking statements include: uncertainties regarding commodity
chemicals price levels (which depend, among other things, on supply and demand
for these products, capacity utilization and substitution rates between these
products and competing products); feedstock availability and prices; operating
costs; starting up and operating facilities; the impact of competition;
uncertainties associated with the North American, South American, European,
and Asian economies and other risks detailed from time-to-time in the publicly
filed disclosure documents and securities commissions reports of NOVA
Chemicals. NOVA Chemicals' 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 except as required by applicable law, NOVA Chemicals undertakes no
obligation to publicly update these forward-looking statements to reflect new
information, subsequent events or otherwise.
Responsible Care(R) is a registered trademark of the Canadian Chemical
Producers Association (CCPA) in Canada and is a registered service mark of the
American Chemistry Council (ACC) in the United States.
For further information:
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