Nova Chemicals to close polystyrene plant

Nova Chemicals Corp., Calgary, says it will close a polystyrene plant at Joliet, Ill., early in 2001 because of high costs and low profits there. The company said it plans to write off non-productive assets at several locations and will take an after-tax charge of about $68 million (US) in the fourth quarter of fiscal 2000.


CALGARY�Nova Chemicals Corp., Calgary, says it will close a polystyrene plant at Joliet, Ill., early in 2001 because of high costs and low profits there.

The company said it plans to write off non-productive assets at several locations and will take an after-tax charge of about $68 million (US) in the fourth quarter of fiscal 2000.

The Joliet plant, acquired 2 years ago from Huntsman Chemical Corp., can produce 105,000 tonnes/year of polystyrene and employs 58 workers.

Nova said industry margins remain weak and the Joliet plant costs are the highest in its polystyrene manufacturing network. It said the level of investment needed to reduce costs at Joliet couldn't be economically justified.

Nova Chemicals has plants at 18 locations in Canada, the US, France, The Netherlands, and the UK.

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