NOVA Chemicals is selling its expandable styrenics business to a subsidiary of Mexican chemical manufacturing company Alpek.
It's expected the transaction will close in the fourth quarter.
NOVA said in a news release Monday that the sale is an important step in its plan to focus on its olefin and polyethylene business.
“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 [ St. Clair Township] Ontario, Canada,” said Luis Sierra, president and CEO of NOVA Chemicals. “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.”
NOVA Chemicals’ expandable styrenics business consists of two product lines, expandable polystyrene and ARCEL® resin, with manufacturing facilities in Pennsylvania and Ohio, along with commercial operations in Asia.
“As a leader in the expandable styrenics business in the Americas, Alpek sees strong business opportunities associated with this purchase,” said José de Jesús Valdez, Alpek’s CEO. “We look forward to welcoming our new team members and capitalizing on the existing momentum to create value for our shareholders.”