Nova Chemicals Sheds Expandable Styrenics Business

Chemicals and plastic resins manufacturer Nova Chemicals will soon part ways with its expandable styrenics business after it reached an agreement to sell the assets to a subsidiary of Alpek S.A.B. de C.V., the Calgary-based firm announced in a release Monday.

“This transaction provides us with immediate cash generation to further strengthen our balance sheet and focus on the safe and successful completion and start-up of our world-class Advanced SCLAIRTECH technology facility under construction in Ontario, Canada,’’ Luis Sierra, president and chief executive officer of Nova Chemicals, said in a statement. “I’d like to thank our employees for their hard work and dedication. I’m confident that our talented people, assets and technology will allow Alpek to grow and improve this business to better serve customers throughout the Americas.”

The business currently operates two plants in Pennsylvania and Ohio that manufacture expandable polystyrene and the ARCEL brand of resin, and has commercial operations in Asia.

“Asa a leader in the expandable styrenics in the Americas, Alpek sees strong business opportunities associated with this purchase,” Alpek CEO Jose de Jesus Valdez said in a statement. “We look forward to welcoming our new team members and capitalizing on the existing momentum to create value for our shareholders.”

Nova Chemicals said the sale of the business will enable it to focus on its olefin and polyethylene business and make investments that further the global circular economy for plastic.