Nova Chemicals

NOVA Chemicals Corporation
Subsidiary
Industry Petrochemical industry
Founded 1954
Headquarters Calgary, Alberta, Canada
Moon Township, Pennsylvania, United States
New Brunswick
Key people
 Todd Karran CEO (November 2009)
Products Ethylene, Polyethylene, Chemical and Energy Co-Products, Expandable Polystyrene and Styrenic Performance Products
Revenue IncreaseUS$3.512 billion (2016)[1]
Number of employees
 2,800 (2016)[2]
Parent Mudabala
Website www.novachemicals.com

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, with Executive Offices in the Pittsburgh suburb of Moon Township, Pennsylvania and Lambton County, Ontario. NOVA Chemicals' products are used in a wide variety of applications, including food and electronics packaging, industrial materials, appliances and a variety of consumer goods. The company operates two business units and holds a 50% interest in a major joint venture with INEOS, called INEOS NOVA.

Company history

NOVA Chemicals was founded in 1954 as Alberta Gas Trunk Lines by the Alberta government. In the 1970s, NOVA Chemicals expanded into the chemicals industry.[3] The company was privatized in 1961 and was renamed NOVA Corporation in 1980.[4][5][6] In 1998 it merged with TransCanada Pipelines Limited [7][8] and also became a publicly traded company for the first time that year.[5] NOVA Chemicals was long headquartered in Calgary, Alberta, until then-CEO Jeffrey Lipton moved the executive offices to Pittsburgh, PA in the late 1990s. While this move was made in order to be closer to US customers, the benefits of the move never materialized. It was also seen as a snub to the province of Alberta, as Premier Ed Stelmach refused to grant NOVA Chemicals a bailout in 2009 due to the financial meltdown and recession, as well as the company's heavy debt load.[5]

On July 6, 2009, the International Petroleum Investment Company (since 2016 IPIC merged with Mudabala), which is wholly owned by the government of the Emirate of Abu Dhabi, completed the 100% purchase of NOVA Chemicals, and transferred its place of incorporation to the Province of New Brunswick.[9][10]

In the United States, NOVA Chemicals has focused recent expansion in the Gulf Coast area. This includes acquiring an olefins plant that produces roughly 1.95 billion pounds of ethylene annually in Geismar, Louisiana, which was purchased from Williams Partners.[11] The company is also considering the building of a new polyethylene plant in St. Clair Township.[12]

The Olefins/Polyolefins

The Olefins/Polyolefins business unit produces and sells ethylene, PE resins and co-products from its two manufacturing centers located in Alberta and Ontario, Canada. The business is built on its feedstock cost advantage in Alberta, world-scale and energy-efficient manufacturing facilities and proprietary Advanced SCLAIRTECH and gas-phase polyethylene technology.

The Olefins/Polyolefins business unit contains three reporting segments:

  • Joffre Olefins, which produces and sells ethylene and co-products and includes the Joffre, Alberta, site’s three ethylene crackers.
  • Corunna Olefins, which produces and sells ethylene and co-products and includes the Corunna, Ontario, ethylene flexi-cracker.
  • Polyethylene, which produces and sells PE and includes both the Alberta and Ontario based PE assets. In addition, the Polyethylene segment licenses its proprietary process technology and catalysts.

Performance Styrenics

Performance Styrenics manufactures and sells expandable polystyrene (EPS) in North America and specialty Polymers. This business unit also has interests in EPS-based downstream ventures and businesses for end-use consumer and industrial applications.

INEOS NOVA

INEOS NOVA is a 50:50 joint venture between NOVA Chemicals and INEOS that manufactures and sells styrene, solid polystyrene (SPS) and EPS.

Until September 30, 2007, NOVA Chemicals operated a commodity styrenics business unit known as STYRENIX, which manufactured and sold styrene and SPS in North America. It also manufactured and sold SPS and EPS in Europe through NOVA Innovene, its 50:50 joint venture with INEOS.

On October 1, 2007, NOVA Chemicals and INEOS expanded their European joint venture to include the North American styrene and SPS businesses of both companies. NOVA Chemicals no longer reports the results of its STYRENIX business unit but rather its interest in INEOS NOVA.

References

  1. ↑ "Selected Financial Information". Retrieved 2018-01-20.
  2. ↑ "Corporate Fact Sheet" (PDF). Retrieved 2018-01-20.
  3. ↑ "Company with three Sarnia-Lambton plants privately held". The Observer. 20 March 2015. Retrieved 15 September 2017.
  4. ↑ Jang, Brent (30 January 2001). "Nova pays through the nose for Alberta natural gas". The Globe and Mail. Retrieved 15 September 2017.
  5. 1 2 3 "Once-mighty Nova Chemicals needs rescuer". National Post. 9 February 2009. Retrieved 15 September 2017.
  6. ↑ "Nova Corp". The Canadian Encyclopedia. Retrieved online 2011-09-28
  7. ↑ "NOVA, TransCanada form $16 billion company". Pittsburgh Business Times. 26 January 1998. Retrieved 15 September 2017.
  8. ↑ NOVA Chemicals history. Retrieved online 2011-09-28 Archived April 15, 2012, at the Wayback Machine.
  9. ↑ Nova Chemicals: "Company History and Development"
  10. ↑ "IPIC to buy Nova Chemicals". Toronto Star. 23 February 2009. Retrieved 15 September 2017.
  11. ↑ "Nova Chemicals expanding again on the Gulf Coast". The Observer. 18 April 2017. Retrieved 15 September 2017.
  12. ↑ "Decision on new plant expected this year". The Observer. 9 August 2017. Retrieved 15 September 2017.
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