Nova Chemicals sells its expandable styrenics business to Alpek
The sale, for an undisclosed amount, will allow Calgary-based Nova to concentrate on the start up of its Sclairtech technology site near Sarnia, Ont.
In what it calls an important step in its plan to focus on its olefin and polyethylene business, Calgary-based material supplier Nova Chemicals Corp. has sold its expandable styrenics business to Mexican conglomerate Alpek SAB de CV for an undisclosed price.
The sale includes manufacturing plants in Painesville, Ohio, and Monaca, Pa. Nova’s expandable styrenics business consists of two product lines, expandable polystyrene and Arcel resin.
“This transaction provides us with immediate cash generation to further strengthen our balance sheet and focus on the safe and successful completion and start-up of our, world-class Advanced Sclairtech technology facility under construction in Ontario, Canada,” Nova president and CEO Luis Sierra said in an Oct. 19 statement. “I’m confident that our talented people, assets and technology will allow Alpek to grow and improve this business to better serve customers throughout the Americas.”
Nova’s Sclairtech facility is in Sarnia, Ont.
Headquartered in Monterrey, Mexico, Alpek is a global supplier of PET and purified terephthalic acid, one of the largest rPET producers in the Americas, the largest expandable polystyrene manufacturer in the Americas, and the only producer of polypropylene and caprolactam in Mexico. The company operates 28 plants in Canada, the U.S., Mexico, Brazil, Argentina, Chile and the UK, and employs more than 6,000 people.
The transaction is expected to close in the fourth quarter.