Refocuses on core olefin and polyethylene business; Strengthens balance sheet for continued growth and further investment in a plastics circular economy
Pittsburgh, PA, Oct. 19, 2020 (GLOBE NEWSWIRE) -- NOVA Chemicals Corporation ("NOVA Chemicals") today announced that it has agreed to sell its expandable styrenics business to a subsidiary of Alpek S.A.B. de C.V. ("Alpek"). The parties expect to close the transaction in the fourth quarter.
The sale of its expandable styrenics business is an important step in NOVA Chemicals' plan to focus on its olefin and polyethylene business, which includes additional investments to advance a global circular economy for plastic.
"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," stated Luis Sierra, president and CEO of NOVA Chemicals. "I'd like to thank our employees for their hard work and dedication. 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."
"As a leader in the expandable styrenics business in the Americas, Alpek sees strong business opportunities associated with this purchase," stated José de Jesús Valdez, Alpek's CEO. "We look forward to welcoming our new team members and capitalizing on the existing momentum to create value for our shareholders."
NOVA Chemicals' expandable styrenics business consists of two product lines, expandable polystyrene and ARCEL resin, with manufacturing facilities in Pennsylvania and Ohio, along with commercial operations in Asia.
About NOVA Chemicals
NOVA Chemicals develops and manufactures chemicals and plastic resins that make everyday life healthier, easier and safer. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to Sustainability and Responsible Care. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
Alpek is a leading petrochemical company operating two business segments: "Polyester" (PTA, PET, rPET, and polyester fibers), and "Plastics & Chemicals" (expandable polystyrene, polypropylene, caprolactam, and other specialty & industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, 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. In 2019, Alpek reported revenues of U.S. $6.2 billion and EBITDA of U.S. $0.9 billion. The Company operates 28 plants in the United States, Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom, and employs more than 6,000 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
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Advanced SCLAIRTECH is a trademark of NOVA Chemicals.
ARCEL is a registered trademark of NOVA Chemicals Inc.
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This news release contains forward-looking statements regarding (i) NOVA Chemicals' planned disposition of its expandable styrenics business, and (ii) NOVA Chemicals' potential future investments. Forward-looking statements include the expected timing of closing of the disposition and NOVA Chemicals' strategy, including potential additional investments to advance a global circular economy for plastic. By their nature, forward-looking statements require NOVA Chemicals to make assumptions and are subject to inherent risks and uncertainties. NOVA Chemicals' forward-looking statements are expressly qualified in their entirety by this cautionary statement. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable law, NOVA Chemicals undertakes no obligation to update the forward-looking statements to reflect new information, subsequent events or otherwise.