NOVA Chemicals Corp., a chemicals and plastics manufacturer, recently agreed to sell its expandable styrenics business to a subsidiary of Alpek S.A.B. de C.V., a petrochemical company, which operates polyester and plastics and chemicals segments.
The business has manufacturing facilities in Pennsylvania and Ohio and commercial operations in Asia. It produces two product lines: expandable polystyrene and ARCEL resin.
The sale is part of NOVA Chemicals’ plan to focus on its olefin and polyethylene business. The plan includes additional investments to advance a global circular economy for plastic.
“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, NOVA Chemicals president and CEO, said. “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 sale is expected to close before the end of the year.
NOVA Chemicals is headquartered in Calgary, Alberta, and is owned by Mubadala Investment Co.