European styrenics
16 Nov 2004
NOVA Chemicals has reached an agreement in principle to merge its European styrenic polymers business into a new 50:50 Joint Venture with BP.
The planned Joint Venture will manufacture and market styrenic polymers in Europe and will have its headquarters in Fribourg, Switzerland.
The Joint Venture is expected to generate approximately $1 billion in revenue from seven manufacturing sites in France, Germany, the Netherlands, Sweden and the UK. The new business will offer styrenic polymers, including some solid and expandable polystyrene products.
NOVA Chemicals and BP expect to reach final agreements in early 2005 and commence operations of the Joint Venture in the first half of 2005. The proposed transaction will be subject to regulatory and other approvals.
NOVA Chemicals is a commodity chemical company that produces ethylene, polyethylene, styrene monomer and styrenic polymers, which are used in a wide range of consumer and industrial goods. It manufactures the products at 18 operating facilities located in the US, Canada, France, the Netherlands and the UK. The company also has five technology centres that support research and development initiatives.
