Business
NOVA Chemicals Restructuring to Create Separate STYRENIX Unit and Cut Costs
NOVA Chemicals Restructuring to Create Separate STYRENIX Unit and Cut Costs.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\n\nPITTSBURGH, June 26 /CNW/ - NOVA Chemicals Corporation\n(NYSE:NCX)(TSX:NCX) today announced it plans to restructure in order to better\nalign resources and reduce costs. NOVA Chemicals' styrene monomer and solid\npolystyrene assets in North America and the company's interest in the European\n50:50 Joint Venture with INEOS will operate as a separate unit that will be\nknown as STYRENIX.\nCompanywide costs will be reduced by a total of at least U.S. $65 million\nper year, which represents an additional $50 million in annual cost savings\nbeyond the previously announced savings of $15 million per year from the\nChesapeake, Virginia, site closure. In total, approximately 375 positions will\nbe eliminated.\n\"By removing a minimum of $65 million per year of current costs, we\nbelieve STYRENIX will be able to run as the lowest-cost operator of its type\nin the industry,\" said Jeffrey M. Lipton, President and CEO of NOVA Chemicals.\n\"By taking these actions, not only will STYRENIX be more competitive, but the\ncore of our company will also reduce costs and be able to focus on our\nadvantaged ethylene and polyethylene position, as well as expandable\npolystyrene and related Performance Products.\"\nThe STYRENIX unit will include:\n\n-- The Bayport, Texas, and Sarnia, Ontario, styrene monomer production\nfacilities\n\n-- Solid polystyrene manufacturing facilities at Decatur, Alabama;\nSpringfield, Massachusetts; and Montreal, Quebec\n\n-- NOVA Chemicals' interest in the European Joint Venture with INEOS,\nNOVA Innovene.\n\nNOVA Chemicals' Earnings Release for the second quarter, to be issued\nJuly 20, 2006, will reflect the new structure.\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.\nVisit NOVA Chemicals on the Internet at www.novachemicals.com.\n\nForward-Looking Information\n\nThe information in this news release contains forward-looking statements,\nincluding the statements that companywide costs will be reduced by a total of\nat least U.S...