Nova Chemicals restructures, cuts 375 jobs
Petrochemicals and plastics maker Nova Chemicals Corporation announced that it will cut 375 jobs and create a separ...
Petrochemicals and plastics maker Nova Chemicals Corporation announced that it will cut 375 jobs and create a separate unit for its styrene business.
The new unit, called Styrenix, will hold Nova’s styrene and polystyrene assets in North America as well as the company’s interest in a European joint venture.
The job cuts, which represent about a tenth of Nova’s worldwide workforce and which will save the company an estimated $50 million a year, come on the heels of a previously-announced $15 million a year saving from the closure of a facility in Virgina.
“By removing a minimum of $65 million per year of current costs, we believe Styrenix will be able to run as the lowest-cost operator of its type in the industry,” Jeffrey Lipton, Nova’s CEO, said.
The company has not announced where the jobs will be cut.
The job cuts also follow a recent production problem at Nova’s ethylene plant in Corunna, Ont., when a process shutdown switch was accidentally activiated, causing minor damage. The facility is expected to be back in full production by the beginning of July.
Nova has manufacturing sites and operating and technology centres in Canada, the U.S., South America, Europe and Asia.