NOVA to close Ontario LLDPE line

NOVA Chemicals Corp. announced it will be shutting down its 275 million lb. linear low density polyethylene A-line at the St. Clair River site near Sarnia, ON. The line, which was the world’s first LLDPE production line, will be shut down in the second quarter of 2004. The shutdown of the company’s smallest, highest-cost PE line removes about 8% of NOVA’s capacity, or 0.6% of total North American capacity.
According to Jeffrey Lipton, NOVA Chemicals president and CEO, closing the plant will reduce fixed costs by $5 to $10 million per year, as well as increase operating rates at other NOVA facilities where A-line production will be transferred.