Jun 28 2006
NOVA Chemicals Corporation today announced it plans to restructure in order to better align resources and reduce costs. NOVA Chemicals’ styrene monomer and solid polystyrene assets in North America and the company’s interest in the European 50:50 Joint Venture with INEOS will operate as a separate unit that will be known as STYRENIX.
Companywide costs will be reduced by a total of at least U.S. $65 million per year, which represents an additional $50 million in annual cost savings beyond the previously announced savings of $15 million per year from the Chesapeake, Virginia, site closure. In total, approximately 375 positions will be eliminated.
"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," said Jeffrey M. Lipton, President and CEO of NOVA Chemicals. "By taking these actions, not only will STYRENIX be more competitive, but the core of our company will also reduce costs and be able to focus on our advantaged ethylene and polyethylene position, as well as expandable polystyrene and related Performance Products."
The STYRENIX unit will include:
- The Bayport, Texas, and Sarnia, Ontario, styrene monomer production facilities
- Solid polystyrene manufacturing facilities at Decatur, Alabama; Springfield, Massachusetts; and Montreal, Quebec
- NOVA Chemicals’ interest in the European Joint Venture with INEOS, NOVA Innovene.