Nova Chemicals announced that it has agreed to sell its expandable styrenics business to a subsidiary of Alpek S.A.B. de C.V.
The parties expect to close the transaction in the fourth quarter.
The sale of its expandable styrenics business is an important step in Nova Chemicals’ plan to focus on its olefin and polyethylene business, which 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,” stated Luis Sierra, president and CEO of Nova Chemicals.
“As a leader in the expandable styrenics business in the Americas, Alpek sees strong business opportunities associated with this purchase,” stated 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.”
Nova Chemicals’ expandable styrenics business consists of two product lines producing combined 168,000 metric tons per year expandable polystyrene and ARCEL resin, with manufacturing facilities in Pennsylvania and Ohio, along with commercial operations in Asia.