NOVA Chemicals Describes Impact of INEOS NOVA Announcements

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[{"type":"text","content":"\n\n\n\nPITTSBURGH, November 29 /CNW/ - NOVA Chemicals Corporation (NYSE:NCX)\n(TSX:NCX) today announced further progress by the INEOS NOVA styrenics joint\nventure toward the target of U.S. $80 million per year in new joint venture\nsynergies by the end of 2008 as a result of INEOS NOVA's planned closure of\nits Belpre, Ohio, polystyrene facility.\n\n\nThe Belpre facility closure, announced today in an INEOS NOVA news\nrelease, will remove approximately four percent of North American polystyrene\ncapacity and reduce INEOS NOVA's fixed costs by approximately U.S. $9 million\nper year. Combined with the previously announced closure of the Montreal,\nQuebec, polystyrene facility, U.S. $14 million of total synergies have been\nidentified and five percent of North American polystyrene capacity has been\nscheduled for shutdown since INEOS NOVA's startup October 1, 2007.\n\n\nNOVA Chemicals will take charges totaling U.S. $65 million in the fourth\nquarter of 2007. The company will take a non-cash asset write-down of\napproximately U.S. $32 million related to the Belpre closure. NOVA Chemicals'\nshare of Belpre closure and severance costs that will be accrued by the joint\nventure in the fourth quarter will be U.S. $3 million. These closure costs\nwill be funded by the joint venture from cash on hand.\n\n\nINEOS NOVA recently acquired the exclusive rights to production from the\nSterling Chemicals Texas City, Texas, styrene plant. INEOS NOVA is in the\nprocess of transferring Sterling's styrene customers to other INEOS NOVA\nstyrene plants and Sterling has announced plans to permanently shut down the\nTexas City plant. As a result, NOVA Chemicals will take a charge of\napproximately U.S. $30 million in the fourth quarter.\n\n\nINEOS NOVA is the 50:50 styrenics joint venture between NOVA Chemicals\nand INEOS.\n\n\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. NOVA\nChemicals works with a commitment to Responsible Care(R) to ensure effective\nhealth, safety, security and environmental stewardship. Company shares are\ntraded on the Toronto and New York stock exchanges as NCX.\n\n\nVisit NOVA Chemicals on the Internet at www.novachemicals.com\n\n\nForward-Looking Informat...

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