Nova Chemicals extends force majeure
Canadian PlasticsCanadian Plastics
Nova Chemicals Corp. has extended its force majeure on ethylene, propylene, crude C4s and other co-products from it...
Nova Chemicals Corp. has extended its force majeure on ethylene, propylene, crude C4s and other co-products from its Corunna, Ont. manufacturing facility, and on polypropylene (PP) from its Sarnia, Ont. facility.Problems with newly installed compressor trains are to blame for the delay restarting the firm’s Corunna ethylene flexi-cracker.As a result, Nova expects to lose between US$20 and US$30 million dollars in the fourth quarter (Q4) of 2005. This is incremental to the previously announced delay impact estimate of US$10 to $15 million. Overall, Nova estimates the total negative earnings from the shutdown will reach US$60 to US$70 million of net income in Q4 2005.Full operation is expected to resume in mid- to late December.