NOVA Chemicals Corp. (Calgary, Alberta, Canada) announced that it has agreed to sell its expandable styrenics business to a subsidiary of Alpek S.A.B. de C.V. (San Pedro Garza Garcia, Mexico). 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.