Business
NOVA Chemicals Announces Reduction of Solid Polystyrene Capacity and Fixed Costs in Europe
NOVA Chemicals Announces Reduction of Solid Polystyrene Capacity and Fixed Costs in Europe.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\n\nPITTSBURGH, July 25 /CNW/ - NOVA Chemicals Corporation (NYSE:NCX)\n(TSX:NCX) today announced continued progress toward a target of $60 million\nper year in joint venture synergies by the end of 2007, with the announced\nclosure of NOVA Innovene's Carrington, UK, solid polystyrene facility. NOVA\nChemicals will receive 50 percent of the benefit of total joint venture\nsynergies.\nThe Carrington facility closure, announced today in a news release issued\nby NOVA Innovene, will remove approximately six percent of European solid\npolystyrene capacity and reduce NOVA Innovene's fixed costs by approximately\nU.S. $14 million per year. Production at the Carrington solid polystyrene\nfacility, which has rated capacity of 396 million pounds (180 kilotonnes)\nannually, is scheduled to cease in October 2006.\nNOVA Chemicals will take a non-cash asset write-down of approximately\nU.S. $35 million after-tax in the third quarter of 2006 related to the\nfacility closure. In addition, the joint venture will accrue an estimated U.S.\n$16 million in the third quarter for closure and severance costs, of which\nNOVA Chemicals' share will be $8 million. In total, NOVA Chemicals will record\na charge of approximately $43 million after-tax in the third quarter of 2006.\nNOVA Innovene is the 50:50 European styrenic polymers joint venture\nbetween NOVA Chemicals and INEOS.\nNOVA Chemicals produces plastics and chemicals that are essential to\neveryday life. Our employees develop and manufacture materials for customers\nworldwide that produce consumer, industrial and packaging products. We work\nwith a commitment to Responsible Care(R) to ensure effective health, safety,\nsecurity and environmental stewardship. Company shares are traded on the\nToronto and New York stock exchanges as NCX.\nVisit NOVA Chemicals on the Internet at www.novachemicals.com.\nFor more information about NOVA Innovene, visit www.nova-innovene.com.\n\nForward-looking Information\n\nThe information in this news release contains forward-looking statements,\nincluding the statements that NOVA Chemicals will take a non-cash asset\nwrite-down of approximately U.S. $35 million after-tax in the third quarter of\n2006 related to the NOVA Innovene joint venture's plans to close its\nCarrington, UK solid polystyrene plant; the joint venture will accrue\napproximately U.S. $16 mill...