Consumables
NOVA Chemicals announces plans for Ontario polyethylene asset modernization and expansion
Friday 11. January 2008 - NOVA Chemicals Corporation today announced plans for a series of polyethylene plant modernization and expansion projects in the Sarnia, Ontario, region. The projects will add a total of up to 250 million pounds per year of new polyethylene capacity in stages over the next two years.
“These projects should have about a two year pay-back and will generate meaningful earnings growth for our shareholders in every part of the industry business cycle,” said Jeffrey M. Lipton, Chief Executive Officer. “The upgrades include technology that will enable us to produce higher value products that our customers are hungry for.”
# The projects include: Upgrading products, improving reliability and expanding the low density polyethylene unit at Mooretown, Ontario
# Optimizing the high density polyethylene unit at Mooretown to increase throughput rates and improve product quality
# Debottlenecking high density polyethylene and linear low density polyethylene production at the St. Clair River site at Corunna, Ontario
The projects are now feasible because the Corunna flexi-cracker modernization completed in 2007 has successfully delivered: greater ethylene capacity, increased energy efficiency, improved plant reliability and global cost competitiveness. The total cost of the projects will be approximately $80 million, which will not result in a material change in the companys overall capital program. The projects will require appropriate Board of Directors approvals as they proceed.
