2007/12/18@INEOS NOVA

INEOS NOVA and SEEA Polymers announce plans for new EPS plant

INEOS NOVA and SEEA Polymers today announced they have signed a letter of intent to form a 50/50 joint venture to build and operate a new expandable polystyrene (EPS) plant in Romania. The proposed facility will have production capacity of 100 KT per year and is expected to start operations by late 2009.

gThis new plant will be located in the heart of one of the highest growth areas for EPS in the world,h said Martin Pugh, Managing Director, Europe for INEOS NOVA. gWe expect this plant to manufacture a full range of products and be the lowest cost producer of EPS in Europe.h

Florin Andrei, CEO of SEEA Polymers said,
gWe are pleased to bring the plastics industry expertise of our fast growing Romanian based company to this joint venture with INEOS NOVA, the European EPS market leader. We believe the combination will enable the new joint venture to quickly establish leadership in the region.h

Growth rates for EPS consumption in the region are projected to continue to be more than 10 percent per year. The proposed plant will be located on a site owned by SEEA Polymers in Medgidia, Romania, near the Black Sea. The location will enable the new plant to enjoy reliable, low-cost logistics.

Following completion of final market and capital plans the two companies expect to negotiate and finalise a binding agreement by the end of the first quarter of 2008.

INEOS NOVA is committed to being recognised as the global leader in styrenics. Our employees manufacture and market styrene and styrenic polymers with a dedicated focus on health, safety, security and environmental stewardship. INEOS NOVA is a joint venture of INEOS and NOVA Chemicals.

SEEA Polymers is an entrepreneurial plastics manufacturing and processing company created by a group of Romanian investors led by Mr Florin Andrei. Mr Andrei has extensive experience in the domestic and regional petrochemical market in his previous position as Chief Executive Officer of Rompetrol Petrochemicals. Before joining Rompetrol he held a number of positions over 10 years at Dow Corning and The Dow Chemical Company.