10 January 2008 - Nova Chemicals is to commit $80m (Euro55m) to an expansion of its polyethylene capability under a two year programme covering plants in the Sarnia area, in Ontario.
The Canadian group will add a total of 115,000 tonnes a year of capacity as a result of the project, which stems from last year's completion of a modernisation investment at its Corunna oil fed flexi cracker in Ontario. The modernisation boosted both ethylene volumes and improved efficiency.
The PE programme includes upgrading products and raising capacity at the LDPE plant at Mooretown, Ontario, optimising the HDPE plant at the same site and debottlenecking both HDPE and LLDPE plants at Corunna.
Jeff Lipton, Nova Chemicals chief executive officer, said: "These projects should have about a two year payback and will generate meaningful earnings growth for our shareholders in every part of the industry business cycle."
He added:"The upgrades include technology that will enable use to produce higher value products that our customers are hungry for."
Despite the investment at Sarnia, Nova Chemicals' prime site remains Alberta where it enjoys what Lipton describes as the "Alberta Advantage" due to the natural gas prices in the province.
The Canadian group will add a total of 115,000 tonnes a year of capacity as a result of the project, which stems from last year's completion of a modernisation investment at its Corunna oil fed flexi cracker in Ontario. The modernisation boosted both ethylene volumes and improved efficiency.
The PE programme includes upgrading products and raising capacity at the LDPE plant at Mooretown, Ontario, optimising the HDPE plant at the same site and debottlenecking both HDPE and LLDPE plants at Corunna.
Jeff Lipton, Nova Chemicals chief executive officer, said: "These projects should have about a two year payback and will generate meaningful earnings growth for our shareholders in every part of the industry business cycle."
He added:"The upgrades include technology that will enable use to produce higher value products that our customers are hungry for."
Despite the investment at Sarnia, Nova Chemicals' prime site remains Alberta where it enjoys what Lipton describes as the "Alberta Advantage" due to the natural gas prices in the province.
