NOVA Chemicals Corporation　　　　　　歴史

NOVA Chemicals Corporation, headquartered in Calgary, Alberta, Canada is a focused commodity chemical company, producing styrenics and olefins/polyolefins at 18 locations in the United States, Canada, France, the Netherlands and the United Kingdom.

With our July 1998 launch as an independent company - one of the few publicly traded companies focused on commodity chemicals - we head into the future with sustainable competitive advantages, a strong financial position and unique growth plans.

As of January 2000, we are the:
　largest producer of styrene and polystyrene in North America
　2nd largest producer of styrenic polymers in Europe
　5th largest producer of ethylene in North America
　5th largest producer of polyethylene in North America


We operate petrochemical and plastics plants and research and development facilities around the world. NOVA Chemicals recently brought into production a 2.8 billion lb./year (1275 kilotonne) ethylene facility. We are also in the final stages of commissioning an 850 million lb./year (380 kilotonne) Advanced SCLAIRTECH polyethylene facility, which will start up in early 2001. Both plants are located in Alberta, Canada.

NOVA Chemicals also holds a 29 per cent interest in Methanex Corporation, the world's largest and lowest-cost producer of methanol. NOVA Chemicals Corporation shares trade on the Toronto and New York exchanges under the trading symbol NCX.

We operate two businesses - olefins/polyolefins and styrenic polymers. From plants in Canada, the U.S., and Europe, we produce:

　　Olefins/polyolefins

ethylene
polyethylene
chemical and energy co-products, including all the olefin and aromatic petrochemical building blocks

　Styrene and styrenic polymers

specialty polystyrene including DYLARK^® engineering resins
expandable polystyrene (EPS)
solid polystyrene

歴史

October 20, 2003

NOVA Chemicals shuts down high-cost polyethylene capacity
　　　http://www.nova.ca/08_news/a_line_1003.html

NOVA Chemicals Corporation today announced the shutdown of a 275 million pound linear low-density polyethylene line at its St. Clair River Site, in Corunna, Ontario. This shutdown will occur during the second quarter of 2004.

Built in 1960, A-Line was the world’s first linear low-density polyethylene production line. The shutdown of the company’s smallest, highest-cost polyethylene line removes 8% of NOVA Chemicals’ capacity, which is 0.6% of total North American polyethylene capacity. The company expects the shutdown to impact roughly 60 positions.

Approximately 80% of the most profitable sales from A-Line will be moved to other facilities. Thirty percent will move to the new Advanced SCLAIRTECH? technology line in Joffre, Alberta. This will result in higher operating rates for the new plant and significantly lower production costs for the retained products.

“Our objective is to have the lowest-cost assets with the highest-return product portfolio in the industry,” said Jeffrey M. Lipton, President and CEO of NOVA Chemicals. “While we do see business improving, we believe it always makes good sense to increase the operating rates of our lowest-cost facilities and reduce our fixed costs by $5 to $10 million per year.”

NOVA Chemicals is a focused, commodity chemical company that produces ethylene, polyethylene, styrene monomer and styrenic polymers, which are used to manufacture a wide range of consumer and industrial goods. NOVA Chemicals distributes its products from 18 operating facilities that include: eight sites in the United States, six locations in Canada, two in France, one in the Netherlands and one in the United Kingdom. The company also has five technology centers that support research and development initiatives. NOVA Chemicals Corporation shares trade on the Toronto and New York stock exchanges under the trading symbol NCX.

October 21, 2004 NOVA Chemicals

NOVA Chemicals selected as partner for proposed world-scale ethylene/polyethylene complex in Mexico
http://www.novachem.com/08_news/phoenix_1004.html

NOVA Chemicals Corporation today confirmed it has been selected by Pemex Petroquimica (Pemex) as a partner in a feasibility study for a potential world-scale ethylene and polyethylene complex in Mexico.

This confirmation follows today’s announcement by Pemex, which has named NOVA Chemicals and two Mexican companies - Grupo Idesa and Indelpro - as its strategic joint-venture partners in the proposed ethylene-based petrochemicals and plastics complex known as Project Phoenix. The partners have committed to a feasibility study that aims to confirm the project will deliver a globally competitive ethylene cracker and key derivatives, initially including two world-class polyethylene plants.

“We are pleased to be selected by Pemex as a partner for what could be a truly outstanding chemicals and plastics complex,” said Jeffrey M. Lipton, President and Chief Executive Officer of NOVA Chemicals. “We believe that this proposed complex has all of the ingredients to be the next logical supply increment for the North and South American ethylene/polyethylene markets. We expect to develop a world-scale facility that is globally cost competitive, will produce a wide range of high quality products and will target start up in 2009 or 2010, depending on market conditions.”

Initial assessments by NOVA Chemicals indicate potential for the proposed complex to achieve a competitive position that equals or exceeds that of the company’s cost-advantaged Alberta, Canada, facilities. A Mexican complex will benefit from access to advantaged feedstocks, a strong and growing domestic polyethylene market, and broad market access through the North American Free Trade Agreement (NAFTA) and potentially the Mercosur trade agreement. NOVA Chemicals was selected to participate in the joint-venture study because of its proven success in the design, construction and operation of advantaged assets in Canada, its proprietary catalyst and Advanced SCLAIRTECH - polyethylene technology, as well as its marketing expertise.

NOVA Chemicals is a focused, commodity chemical company that produces ethylene, polyethylene, styrene monomer and styrenic polymers, which are used in a wide range of consumer and industrial goods. NOVA Chemicals manufactures its products at 18 operating facilities located in the United States, Canada, France, the Netherlands and the United Kingdom. The company also has five technology centers that support research and development initiatives. NOVA Chemicals Corporation shares trade on the Toronto and New York stock exchanges under the trading symbol NCX.

November 16, 2004 NOVA Chemicals

NOVA Chemicals announces intent to form European Styrenics Joint Venture with BP
http://www.novachem.com/08_news/bpjv_1104.html

NOVA Chemicals Corporation today announced it has reached an agreement in principle to merge its European styrenic polymers business into a new 50:50 Joint Venture with BP plc (BP). The planned Joint Venture is expected to be a leading manufacturer and marketer of styrenic polymers in Europe and will be headquartered in Fribourg, Switzerland.

“The Joint Venture will leverage the existing assets and capabilities of both partners and has the potential to deliver meaningful cost reductions as well as a stronger, broader product line to our customers,” said Jeffrey M. Lipton, President and Chief Executive Officer of NOVA Chemicals. “We believe this is the best way for us to effectively address an underperforming segment of our business. The transaction will be cashless and is consistent with our corporate strategy.”

The Joint Venture is expected to generate approximately $1 billion U.S. in revenue from seven manufacturing sites in France, Germany, the Netherlands, Sweden and the United Kingdom. The new business will offer market-leading styrenic polymers, including some innovative, high-performance 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 focused, commodity chemical company that produces ethylene, polyethylene, styrene monomer and styrenic polymers, which are used in a wide range of consumer and industrial goods. NOVA Chemicals manufactures its products at 18 operating facilities located in the United States, Canada, France, the Netherlands and the United Kingdom. The company also has five technology centers that support research and development initiatives. NOVA Chemicals Corporation shares trade on the Toronto and New York stock exchanges under the trading symbol NCX.

September 6, 2005 NOVA Chemicals

NOVA Chemicals announces agreement to manufacture ARCEL(R) resin in Asia to meet demand growth
http://www.novachem.com/appl/prelease/news.cfm?ID=301

NOVA Chemicals Corporation today announced that it has entered into a long-term agreement with Loyal Chemical Industrial Corporation to manufacture ARCEL(R) moldable foam resin near Shanghai, China. This agreement is a component of NOVA Chemicals´ plan to expand manufacturing capacity for ARCEL, a one-of-a-kind expandable inter-polymer, to 100 million pounds (45 kilotonnes) annually by the end of 2006.

"We are pleased to establish this partnership with Loyal Chemical, a respected leader in Asia for expandable resin production," said Dan Nelson, NOVA Chemicals´ Vice President of Specialty Foams. "This agreement will enable us to more effectively deliver the superb benefits of ARCEL to the rapidly growing, high-performance moldable foam market throughout Asia."

ARCEL resin combines the toughness of polyethylene and the processability of polystyrene to yield a uniquely resilient inter-polymer. ARCEL delivers value to the entire supply chain by reducing packaging size, which results in significant space and cube efficiency. "Our mission is to ensure that every OEM, contract manufacturer and supply partner around the world understands the overall cost benefits that ARCEL offers - the magic behind ARCEL´s remarkable growth," said Nelson.

"Loyal Chemical is very pleased to partner with NOVA Chemicals, a leader in high-value styrenic polymers," said C.T. Liao, Chief Executive Officer of Loyal Chemical Industrial Corporation. "As China´s largest expandable polystyrene producer, we look forward to introducing more Asian customers to ARCEL´s industry-leading performance attributes."

Construction of the ARCEL resin manufacturing facility is underway and production is expected to commence in early 2006. ARCEL is currently produced at NOVA Chemicals´ Beaver Valley manufacturing site (near Pittsburgh, PA), where a previously announced capacity expansion is underway. ARCEL resin is processed by customers in North America, South America, Europe, Asia and Australia and is available from NOVA Chemicals and its molding partners. ARCEL resin runs on standard expandable polystyrene (EPS) molding equipment, processes more easily than competitive materials and is recyclable in the polystyrene recycling stream.

NOVA Chemicals produces commodity plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. We work with a commitment to Responsible Care(R) to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at www.novachemicals.com.

Loyal Chemical Industrial Corporation was founded in 1976 and specializes in a full range of EPS production, using the brand name King Pearl. Within 13 years of entering the Chinese market, Loyal Chemical has become the largest EPS manufacturer in Asia, with an annual capacity of more than 1.5 billion pounds (700 kilotonnes). Loyal Chemical is a reliable and respected private organization led by the owner and founder, Mr. Y.C. Liao.

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ARCEL(R) 　　　　　　http://www.novachem.com/ARCEL/index.cfm

ARCEL is a high-performance, moldable foam resin consisting of 70% polystyrene (PS) and 30% polyethylene (PE). ARCEL provides the best of both polymers with its exceptional toughness, flexibility and durability in a lightweight foam.
The strength and flexibility of ARCEL creates a resilient resin able to be molded into numerous complex and intricate forms. Its lightweight construction is resistant to puncture, flaking, tearing and breaking. In addition, packaging molded with ARCEL provides superb cushioning and easy handling, while its lightweight properties help lower freight and other packaging costs.

July 18, 2006 NOVA

NOVA Chemicals announces start-up of ARCEL(R) resin manufacturing facility to support growing Asian markets

NOVA Chemicals Corporation today announced the successful start-up of an ARCEL(R) moldable foam resin manufacturing facility in Ningbo, China, near Shanghai. The new facility, Ningbo Chang-Qiao Engineering Plastics Co., Ltd., ensures local sourcing of ARCEL in Asia and is operated under a long-term manufacturing agreement with Loyal Chemical Industrial Corporation, the largest expandable polystyrene producer in the world.

ARCEL is a high-performance, moldable foam resin consisting of 70% polystyrene (PS) and 30% polyethylene (PE). ARCEL provides the best of both polymers with its exceptional toughness, flexibility and durability in a lightweight foam.

"This new manufacturing capability supports NOVA Chemicals' strategy to shorten the supply chain for Asian markets as demand for ARCEL continues to grow in the region," said Tim Wong, NOVA Chemicals' General Manager for ARCEL resin in Asia. "We are very pleased to partner with an industry leader like Loyal Chemical to deliver the unique benefits of ARCEL to customers locally and worldwide."

ARCEL resin delivers significant value as a protective packaging material for damage-sensitive goods such as televisions, computers, printers, appliances and furniture. By enabling reductions in package sizes, ARCEL improves space and cube efficiency and therefore can deliver logistics cost savings for manufacturers. In addition, the toughness and unique cushioning properties of this advanced inter-polymer for packaging work to successfully protect goods in transit - even in the case of multiple drops during shipping. By retaining structural integrity from the manufacturer to the customer, packaging made with ARCEL resin ensures a positive "out-of-the-box" experience for consumers and reduces costly product returns.

"We are pleased to partner with NOVA Chemicals to support the growth of ARCEL resin in Asia," said Mr. Y.C. Liao, Chairman and President of Loyal Chemical. "We are proud to say that the efficiency, reliability and productivity of the Chang-Qiao facility can assure the highest quality standards for ARCEL."

The new ARCEL resin manufacturing facility at Ningbo supports NOVA Chemicals’ strategic growth plans for its Performance Products. ARCEL resin is also produced at NOVA Chemicals’ Beaver Valley site in Monaca, Pennsylvania, which serves as the center for ARCEL resin research and development. ARCEL resin runs on standard EPS molding equipment, processes more easily than competitive materials, and is recyclable in the polystyrene recycling stream. ARCEL resin is processed by customers worldwide. For more information, visit www.arcelresins.com or e-mail arcel@novachem.com.

Loyal Chemical Industrial Corporation was founded in 1976 and specializes in a full range of EPS products, using the brand name King Pearl. Within 14 years of entering the Chinese market, Loyal Chemical has become the largest EPS manufacturer in the world, with an annual capacity of more than 1.9 billion pounds (880 kilotonnes). The company’s newest, preeminent plant in Tianjin began operation in June 2006 with a capacity of 180 kilotonnes. Loyal Chemical (www.loyalgroup.com) is a reliable and respected private organization in Taiwan and China.

NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. We work with a commitment to Responsible CareR to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.

Platts 2006/7/20

US styrenics sector in need of further consolidation: Lipton

Nova Chemical CEO Jeff Lipton said in a Thursday conference call he feels it is necessary for the US styrenics industry to keep shutting down facilities, consider consolidation and start moving on to stop bleeding profits in the weak sector.

"The polystyrene products are clear drop-ins, and even the smallest customer has power in that environment," Lipton said, noting that "cost advantage and product uniqueness" are the real keys to healing this part of the industry.

"We believe we have the lowest cost at Bayport (Texas), and our advantage over the worst might be 2 or 3 cents a pound," Lipton said. "This leads to very poor business conditions for everyone, and that's why we've had a positive response to Styrenix."

The Bayport styrene plant, with annual production capacity of 1.25 billion pounds, restarted this week from a nearly two-month shutdown caused by the loss of ethylene feedstock following an explosion at Huntsman's Port Arthur, Texas, olefins unit.

His statements come on the heels of Nova's company restructure, which placed the recently reopened Bayport plant in the non-core Styrenix division.
The said division lost $45 million in the quarter ending June 30. Lipton said Styrenix will not be considered part of the core business "no matter what happens in the short-term."

On June 26, Nova reported that it was separating its North American styrenics businesses and its interest in the European 50:50 joint venture with Ineos into Styrenix.

Nova said it will keep its ethylene, polyethylene and expandable polystyrene businesses. Nova will separate its businesses into three separate units, according to a company spokesman -- ethylene and polyethylene, EPS and performance products, and Styrenix.

July 25, 2006 Nova Chemicals

NOVA Chemicals announces reduction of solid polystyrene capacity and fixed costs in Europe

NOVA Chemicals Corporation today announced continued progress toward a target of $60 million per year in joint venture synergies by the end of 2007, with the announced closure of NOVA Innovene's Carrington, UK, solid polystyrene facility. NOVA Chemicals will receive 50 percent of the benefit of total joint venture synergies.

The Carrington facility closure, announced today in a news release issued by NOVA Innovene, will remove approximately six percent of European solid polystyrene capacity and reduce NOVA Innovene's fixed costs by approximately U.S. $14 million per year. Production at the Carrington solid polystyrene facility, which has rated capacity of 396 million pounds (180 kilotonnes) annually, is scheduled to cease in October 2006.

NOVA Chemicals will take a non-cash asset write-down of approximately U.S. $35 million after-tax in the third quarter of 2006 related to the facility closure. In addition, the joint venture will accrue an estimated U.S. $16 million in the third quarter for closure and severance costs, of which NOVA Chemicals' share will be $8 million. In total, NOVA Chemicals will record a charge of approximately $43 million after-tax in the third quarter of 2006.

NOVA Innovene is the 50:50 European styrenic polymers joint venture between NOVA Chemicals and INEOS.

NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible CareR to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.

NOVA Innovene 　http://www.nova-innovene.com/

Headquartered in Fribourg, Switzerland, NOVA Innovene is a 50:50 joint venture between NOVA Chemicals and INEOS, who acquired BP's Innovene in December 2005. With a turnover of Euro 1 billion per annum, NOVA Innovene is a European leader in styrenic polymers, supplying customers in a wide range of market segments. NOVA Innovene employees develop, manufacture and market commodity and performance styrenic polymers that are essential to everyday life.

July 25 th 2006　NOVA Innovene

NOVA Innovene announces intention to close its Polystyrene site in Carrington, UK

Fribourg, Switzerland, NOVA Innovene announced today its intention to close its Carrington, UK, site in October 2006. The plant has solid polystyrene production capacity of 180 kilotonnes per year and currently employs 82 people.
“We have significant overcapacity in our PS business” said Martin Pugh, Managing Director of NOVA Innovene. “This, combined with significant feedstock volatility, has depressed margins, making our PS business unprofitable. In making this change, we intend to address our overcapacity and improve our cost structure, a key objective for NOVA Innovene.”
“We do, however, recognise the potential impact of such a decision and will work hard to make this transition as successful as possible for our employees at the site and the community.”
“This is a major change for our customers and the market” said Pierre Minguet, Polystyrene Business Director. We will be working closely with all our customers to manage the change as best as possible. We have also been actively reviewing our grade portfolio and expect to be able to provide equivalent grades from other European plants.”
Headquartered in Fribourg, Switzerland, NOVA Innovene is the European styrenic polymers joint venture between NOVA Chemicals and INEOS. NOVA Innovene employees develop and manufacture market commodity and performance styrenic polymers that are essential to everyday life. We are committed to the Responsible CareR principles, to ensure effective health, safety, security and environmental stewardship for employees and communities.

2006/9/8 Platts

Nova still weighing options for Styrenix unit: spokeswoman

A Nova Chemicals' spokeswoman said Thursday the company was still studying various options regarding the future of its Styrenix business unit, but did not deny that a sale or joint venture agreement was being considered.

"We are still early in the process," Nova spokeswoman Stephanie Franken said. However, several published reports, all of which cited a report by a Credit Suisse analyst, said a decision about the Styrenix business unit is expected before the end of 2006.

In the news articles, Credit Suisse analyst William Young was cited as saying that Nova likely will receive $500 million for the sale of the Styrenix business. That figure is a fraction of the purported value of the Styrenix asset, market sources said. Young would not comment on any aspect of the story when contacted by Platts on Thursday.

"Those figures are not from Nova," Franken said, responding to questions about the published reports. When asked if the analysts's comments indicated that a sale or JV were the only options still being studied, Franken said, "It is too early for us to narrow the range of options."

According to the published reports, again citing Credit Suisse as the source, Nova will soon make presentations to eight potential buyers and/or joint venture partners seeking to sell the struggling Styrenix styrene monomer/polystyrene business.

"The analyst community is well aware that something will happen (with Nova's Styrenix unit) by the end of the year," said a US-based analyst, who asked not to be identified.

In late June, Nova created the separate, new business unit, which includes most of its North American styrene monomer/polystyrene business and its interest in the European joint venture Nova-Innovene.

US styrene market participants had been anticipating some sort of major move by Nova, even before the creation of the Styrenix division, due to the continuing heavy financial losses reported by the company in recent years. In the first half of 2006, Nova reported a net operating loss of $98 million for the Styrenix business unit, extending the $109 million operating loss in H1 2005.

2007/3/23

NOVA Chemicals、北米のSM、PS事業をINEOSとのJVに移管

NOVA ChemicalsとINEOS は22日、NOVAの北米のＳＭ、ＰＳ事業を両社の欧州の50/50ＪＶのNOVA Innovene に移管することで合意したと発表した。今後手続きを経て、第３四半期に拡大JVが発足する。

移管するのはNOVAの子会社STYRENIXで、テキサスとカナダのオンタリオにあるSM事業、米国とカナダのPS事業のほか、PS系のポリマー、NAS（R)（Styrene Methylmethacrylate copolymer)、ZYLAR（R)（NASの 耐衝撃性改質グレード）、DYLARK（R)（ スチレン-無水マレイン酸共重合体）を含む。

NOVAのCEOは「米国のスチレン業界は設備を廃棄し、統合を検討し、赤字垂れ流しを止めるために動き出す必要がある」と述べており、2006年1月にはバージニア州のチェサピーク工場を閉鎖すると発表し、6月にStyrenix事業部を別会社にすると発表した。

NOVAは事業を「エチレン & ＰＥ」、「発泡PS & 機能製品」、及び「Styrenix」の３つに区分しているが、Styrenixはコア事業ではなく、将来、売却するか、スピンオフすると見られていた。
　　2006/7/27　「欧米でもＰＳ事業は苦境」　

今回の移管により新しいNOVA Innovene の北米、欧州、全世界でのシェアは以下の通りとなる。

INEOSは欧州のSM事業を、NOVAは北米の発泡PS事業を、JVには出さず自社で運営する。

NOVA Innoveneは2005年にNOVAが欧州のPS事業を出してBPとの50/50JVとして設立した。その後、BPが分離したInnoveneをIneosが買収した。

March 22, 2007 Nova Chemicals

NOVA Chemicals announces plan to expand joint venture with INEOS to North America

NOVA Chemicals Corporation today announced it has signed a letter of intent with INEOS to expand the two companies' existing European joint venture to include North American assets. Under the terms of the proposed agreement, the newly expanded 50:50 joint venture will include NOVA Chemicals' STYRENIX unit and other styrenic polymer assets. The STYRENIX unit includes NOVA Chemicals' North American styrene and solid polystyrene assets, as well as the company's interest in the existing European joint venture with INEOS, called NOVA Innovene. INEOS will contribute its North American styrene and polystyrene assets, as well as its interest in the existing NOVA Innovene European joint venture.

The expanded joint venture will also include solid polystyrene-based NAS^®, ZYLAR^® and DYLARK^® polymers from NOVA Chemicals and the AVANTRA^® specialty products of INEOS.

"We are very pleased with this path and believe this larger, stronger JV will quickly build on the success of our recent work with INEOS in Europe. It provides a clear opportunity to significantly reduce costs and participate in industry consolidation," said Jeffrey M. Lipton, President and CEO of NOVA Chemicals. "We expect the expanded JV to add value for our shareholders and we will continue to look for further consolidation opportunities."

The transaction to form the expanded joint venture is expected to close in the third quarter of 2007, subject to approvals and completion of definitive agreements. The expanded venture is expected to have revenues of approximately U.S. $3.5 billion per year. Upon completion, the newly expanded joint venture is expected to have the following capacity rankings:

NOVA Chemicals will retain full ownership of its olefins/polyolefins unit, industry-leading North American expandable polystyrene business, ARCEL^® advanced foam resin, and new expandable polystyrene-based business ventures.

NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care^® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at www.novachemicals.com

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March　22 2007　INEOS

INEOS announces expansion of styrenics joint venture with NOVA Chemicals

INEOS announced today that it has signed a letter of intent with NOVA Chemicals Corporation to expand on the parties' existing styrenics European joint venture so as to include North American assets of both companies. Under the terms of the proposed agreement, INEOS will contribute its North American styrene and polystyrene assets and NOVA Chemicals will contribute its STYRENIX unit and other styrenics polymer assets to a 50:50 joint venture arrangement. The STYRENIX unit includes NOVA Chemicals North American styrene and solid polystyrene assets.

The new joint venture assets will also include solid polystyrene-based NAS®, ZYLAR®, and DYLARK ® polymers from NOVA Chemicals and the Avantra® specialty products of INEOS.

"This is an important next step in the development of our styrenics business and allows us to build on the success that we have experienced in Europe through our partnership with NOVA Chemicals" said Calum MacLean, Chairman of INEOS Styrenics and a Director of INEOS Group Limited. "The expanded joint venture allows for further cost reductions and efficiencies in our joint global styrenics business to create enhanced value and profitability."

The transaction to expand on the existing joint venture arrangement is expected to close in the third quarter of 2007, subject to approvals and completion of definitive agreements. Following closing, the global joint venture arrangement is forecasted to have sales of approximately $3.5 billion per year and a leading market position for styrene and solid polystyrene in North America.

INEOS will retain full ownership of its styrene business in Europe with a styrene manufacturing plant in Marl, Germany.

INEOS is a rapidly growing manufacturer of petrochemicals, specialty and intermediate chemicals and polymers. It comprises 18 businesses each with a blue chip, chemical company vintage, and its production network includes 68 manufacturing facilities in 17 countries throughout the world. In 2006, INEOS had approximately 15,200 employees and sales of more than $33 billion.

2007/4/13 Canadian Press

Nova Chemicals envisions big expansion of Alberta petrochemical industry

Nova Chemicals said Thursday it plans to build a world-class polyethylene plant in Alberta by the end of the decade, pending approval of an associated ethane extraction plant.

The petrochemical facility would produce up to 800 million pounds of polyethylene a year, using feedstock from gas processor Aux Sable Canada Ltd.'s planned ethane plant in Fort Saskatchewan. "If we're going to make full use of it, we're going to have to build a polyethylene plant here," CEO Jeff Lipton said at Nova's annual meeting in Calgary. Lipton would not speculate on costs.

Pittsburgh-headquartered Nova Chemicals is collaborating with Aux Sable on the central Alberta extraction plant to feed its Joffre petrochemicals complex.

The project depends on the Alberta government carrying through on promises to liberalize its ethane royalty regime.

Lipton said he foresees a rapid improvement in Nova's fortunes this year, after a 2006 net loss of US$703 million.

However, the CN Rail strike in February cost Nova Chemicals, which exports the bulk of its production to the United States and Asia, about $12 million. Lack of transport forced the company to cut back operations by 10 to 15 per cent, and CN's continuing labour strife will impact the current quarter, Lipton said.

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March 21, 2007 NOVA Chemicals

NOVA Chemicals and Aux Sable reach agreement on Alberta ethane extraction plant

NOVA Chemicals Corporation (“NOVA Chemicals”) today announced that the company has signed a letter of intent with Aux Sable Canada Ltd. (“ASC”) to develop an ethane extraction plant in Fort Saskatchewan, Alberta that would process natural gas from the Alliance Pipeline. ASC and NOVA Chemicals will work together to develop the project, which will be owned and operated by ASC and is expected to begin operating in mid-2010.
The extraction plant will have the capacity to process as much as 1.2 billion cubic feet of natural gas per day and will produce approximately 40,000 barrels per day of ethane. The extraction plant will be located on land owned by ASC in Fort Saskatchewan, adjacent to the site of ASC’s Heartland Offgas Plant. Ethane will be delivered via pipeline to NOVA Chemicals’ Joffre, Alberta, petrochemical complex for use as a feedstock in the production of ethylene.
“Maintaining and extending the Alberta Advantage for production of ethylene is fundamental to the long-term viability of the petrochemical industry in the province,” said Jeffrey M. Lipton, President and CEO of NOVA Chemicals. “By increasing the recovery of ethane currently being exported from the province, this project will help position NOVA Chemicals and the rest of the Alberta petrochemical industry for future growth.”
"This is an important next step in Aux Sable Canada's strategy to be a leader in fee-for-service processing in the Fort Saskatchewan area. We are excited about the opportunity to grow our Fort Saskatchewan facilities and to play an increasing role in the Government of Alberta's vision of value-added resource processing in the province," said W. J. (Bill) McAdam, President and CEO of ASC.
NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible CareR to ensure effective health, safety, security and environmental stewardship.
Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at www.novachemicals.com.
ASC and its U.S. affiliate, Aux Sable Liquid Products L.P. (“Aux Sable”), are owned by Enbridge Inc. (ENB), Fort Chicago Energy Partners L.P. (FCE-UN) and Williams (WMB). Aux Sable intends to leverage its position as a significant player in the natural gas processing and natural gas liquids businesses through fee-based infrastructure investments. ASC is headquartered in Calgary, Alberta.

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Aux Sable Liquid Products 　　　http://www.auxsable.com/

Aux Sable Liquid Products is a US$400 million (C$550 million), world-scale natural gas liquids (NGL) extraction and fractionation facility constructed to initially process up to 2.1 billion cubic feet of natural gas per day. It is designed to initially recover 70,000 barrels per day of NGL (ethane, propane, normal butane, iso-butane and natural gasoline).

Aux Sable is the largest facility of its kind in the U.S. It has become a significant propane supplier for the Midwest, particularly for the state of Illinois. The facilities are connected with existing product pipelines that also make NGL available elsewhere in the United States and Canada.

July 23, 2007 Nova

NOVA Chemicals and Williams announce letter of intent for project to extract ethane from Alberta oil sands

NOVA Chemicals Corporation today announced it has reached an agreement with Williams to evaluate processing current and future off-gas streams from the Alberta oil sands to extract ethane. This feedstock would be delivered to NOVA Chemicals' Joffre, Alberta, manufacturing facility, utilizing the existing Joffre Feedstock Pipeline.

"We're very pleased to be the first petrochemical company to find a potential path to the economic recovery of ethane from the Alberta oil sands, which contain the second largest proven reserves of oil in the world," said Chris Pappas, Chief Operating Officer of NOVA Chemicals. "This additional, cost-advantaged feedstock will help secure our foundation for additional growth in Alberta."

Under the terms of a letter of intent, Williams would modify the existing oil sands off-gas liquids fractionation facility near Redwater, Alberta, to enable extraction of ethane and ethylene. This facility would be owned by Williams. NOVA Chemicals would be the exclusive, long-term customer for the project, which is expected to begin operating in stages starting as early as 2010. Williams is currently processing an off-gas liquids stream at Redwater for the production of propylene.

NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care^® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.

September 18, 2007

INEOS NOVA joint venture will acquire rights to Sterling styrene production

NOVA Chemicals Corporation today announced that it has secured exclusive rights to the styrene production from Sterling Chemicals Inc.'s Texas City, Texas, manufacturing facility on behalf of its pending joint venture with INEOS. The INEOS NOVA joint venture has received U.S. regulatory approval and will be assigned the rights when the joint venture is operational, which is expected to be October 1, 2007. The $60 million cost of the transaction will be fully funded by the INEOS NOVA joint venture from cash on hand.

"This agreement will allow our joint venture with INEOS to rapidly reduce costs and optimize production," said Jeffrey M. Lipton, President and Chief Executive Officer of NOVA Chemicals. "We believe this is a very significant step that will accelerate a return to financial health for the styrenics chain."

Sterling's Texas City facility has 1.7 billion pounds of annual styrene production capacity, which represents approximately 11% of North American capacity and 3% of global capacity.

NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care^® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.

SEPTEMBER 18, 2007

STERLING CHEMICALS ANNOUNCES LONG-TERM STYRENE SUPPLY AGREEMENT

STERLING CHEMICALS, INC. has announced that on September 17, 2007, it entered into a long-term exclusive styrene supply agreement and a rail car purchase and sale agreement with NOVA Chemicals Inc. ("Nova"). The effectiveness of these agreements is conditioned on the approval of the supply agreement by the Federal Trade Commission (the "FTC"). If the supply agreement becomes effective, it will have an initial term extending until December 31, 2017, subject to some limited earlier termination rights held by Sterling.
Under these agreements, Nova will have the exclusive right to the entire production capacity of Sterling’s Texas City, Texas styrene plant, the amount of any styrene supplied being at Nova’s option based on a full-cost formula, and will purchase Sterling’s styrene monomer rail car fleet. In exchange, Nova has agreed to pay Sterling $60 million within ten business days after the agreements become effective. Alternatively, if the FTC does not approve the supply agreement, Nova will be required to pay Sterling a break-up fee of $6 million.
Sterling Chemicals, Inc. is a leading North American producer of selected petrochemicals used to manufacture a wide array of consumer goods and industrial products throughout the world. Its primary products are
　acetic acid 　Percent of Total North American Capacity 17% North American Market Position by Capacity 3
　styrene 　　Percent of Total North American Capacity 11%　North American Market Position by Capacity 4
　and plasticizers.Percent of Total North American Capacity 9%　North American Market Position By Capacity 3

Platts 2007/9/17

Nova to shut Sterling's 1.7B lbs/yr SM unit at Texas City, TX

Following its announcement to acquire Sterling's 1.7 billion lbs/year styrene monomer asset at Texas City, Texas, Nova Chemicals President and Chief Executive Officer Jeff Lipton said Wednesday that it intended to close the facility and shift production to more efficient sites.

After the shutdown of Sterling, operational rates will be much stronger -- an estimated 91%, up 3% from previous levels, he explained. In addition,
Asia and Europe will tighten further.

Regarding the timing, it will take "a reasonable amount of time to clean out inventory," but there's "a good chance that it will "change in the short-term," he said.

With reduced North American capacity, the Asian and European markets "should tighten rapidly." It was also unlikely that material would be imported into the Americas.

There's been an oversupply of styrene monomer in part due to a demand surge for propylene oxide (PO), Lipton explained. As a result, PO plants have run full out with SM as a by-product. Meanwhile ethylbenzene facilities have been forced to cut rates.

For a large-scale PO plant, approximately 2.2 lbs of SM is produced for every one pound of PO. In North America, Lyondell operates two plants, he stated.

However, relief was in sight. At the end of 2008, Dow and BASF will bring a hydrogen peroxide to propylene oxide (HPPO) online at the Verbund site in Antwerp, Belgium. When the HPPO is fully operational, the POSM plants might have to scale back, so EB units may pick up the slack and output more SM, he said. Cutbacks in SM production from the PO sidem "is a significant positive for styrene monomer."

Lipton also said that underutilized SM businesses looked to Asia for export business and local spot opportunities. Using 3 cents for logistical costs, the businesses would netback the price and sell prodcut domestically. Other supplies were then forced to reduce offers, and higher margins resulted.

October 10, 2007 Nova Chemicals

INEOS NOVA announces Montréal polystyrene production to shut down

INEOS NOVA announced today that it plans to shut down its Montréal, PQ polystyrene production by the end of 2007. The site has annual production capacity of 120 million pounds (55 kilotons) of polystyrene.

Kevin McQuade, INEOS NOVA's CEO said, "Shutting down the Montréal site will remove high-cost capacity and enable us to consolidate production at our most efficient manufacturing sites." McQuade went on to say, "We are committed to providing our customers with an effective transition during the coming months."

The shutdown will remove approximately 6% of INEOS NOVA's North American polystyrene production capacity. This action represents the first step toward achieving the estimated $50 million annual North American synergies target for INEOS NOVA.

INEOS NOVA is committed to being recognized 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. Visit us on the internet at www.ineos-nova.com.

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Platts 2007/10/10

Market eyes more PS closures after Ineos Nova's Montreal decision

Following Ineos Nova's announcement Wednesday that it would shut down its 120 million lbs/year polystyrene asset at Montreal by the end of 2007, market participants expected the company to close another site.

During an analyst call September 19, Nova President and CEO Jeff Lipton said, "We expect the (Ineos Nova) JV to take out another 300 to 400 million pounds of solid polystyrene capacity and to have a significant impact on that part of the business, and, as you know, we are not alone. We think the Dow-Chevron Phillips JV, which the FTC has now stated they have no objection to, will follow our start-up quickly. While the partners have not made any specific statements about their plans, we expect to see more consolidation as part of their cost reduction efforts."

One producer Wednesday added, "The market is just consolidating in light of shrinking demand for PS and poor profitability...This will help them streamline. Will be interesting to see what Dow/Chevron will do."

However, another source said that he expected no fundamental change in short-term supply/demand.

In domestic contracts, producers called the three cent increase for October, "solid" on the back of rising ethylene and natural gas.

Platts 2007/11/29

Ineos Nova to shut US polystyrene facility at Belpre, Ohio

UK-Canada styrenics joint venture Ineos Nova plans to permanently shut down its US polystyrene facility at Belpre, Ohio, by January 31, 2008, the company announced Thursday.

The site has production capacity of 220 million lbs/year (100,320 mt/year) of crystal polystyrene.

Ineos Nova previously announced the shutdown of polystyrene production at the Montreal, Quebec facility.

"Shutting down the Belpre site removes additional high-cost capacity and will enable us to further consolidate production at the company's most efficient manufacturing sites," said Kevin McQuade, CEO of Ineos Nova. "We expect the shutdown to have minimal impact on our ability to deliver quality products to our customers and we expect to provide our customers with an effective transition during the coming months."

The shutdown will remove approximately 12% of Ineos Nova's North American polystyrene production capacity. "This action represents another step toward achieving the $80 million synergies target for the new joint venture," the company said in a statement.

In addition, the company will transfer all production its specialty resins--trademarked Nas and Zylar--to its Indian Orchard, Massachusetts site. "Ineos Nova remains committed to growing its Nas and Zylar business," said McQuade. "We believe returning this business to its original manufacturing facility will be seamless and will allow us to more efficiently utilize our manufacturing assets."

Ineos Nova is a joint venture of UK's Ineos and Canada's Nova Chemicals.