NOVA Chemicals announces agreement to manufacture ARCEL® resin in Asia to meet demand growth FOR IMMEDIATE RELEASE
Pittsburgh, PA (September 6, 2005) - NOVA Chemicals Corporation today announced that it has entered into a long-term agreement with Loyal Chemical Industrial Corporation to manufacture ARCEL® moldable foam resin near Shanghai, China. This agreement is a component of NOVA Chemicals´ plan to expand manufacturing capacity for ARCEL, a one-of-a-kind expandable inter-polymer, to 100 million pounds (45 kilotonnes) annually by the end of 2006.
"We are pleased to establish this partnership with Loyal Chemical, a respected leader in Asia for expandable resin production," said Dan Nelson, NOVA Chemicals´ Vice President of Specialty Foams. "This agreement will enable us to more effectively deliver the superb benefits of ARCEL to the rapidly growing, high-performance moldable foam market throughout Asia."
ARCEL resin combines the toughness of polyethylene and the processability of polystyrene to yield a uniquely resilient inter-polymer. ARCEL delivers value to the entire supply chain by reducing packaging size, which results in significant space and cube efficiency. "Our mission is to ensure that every OEM, contract manufacturer and supply partner around the world understands the overall cost benefits that ARCEL offers - the magic behind ARCEL´s remarkable growth," said Nelson.
"Loyal Chemical is very pleased to partner with NOVA Chemicals, a leader in high-value styrenic polymers," said C.T. Liao, Chief Executive Officer of Loyal Chemical Industrial Corporation. "As China´s largest expandable polystyrene producer, we look forward to introducing more Asian customers to ARCEL´s industry-leading performance attributes."
Construction of the ARCEL resin manufacturing facility is underway and production is expected to commence in early 2006. ARCEL is currently produced at NOVA Chemicals´ Beaver Valley manufacturing site (near Pittsburgh, PA), where a previously announced capacity expansion is underway. ARCEL resin is processed by customers in North America, South America, Europe, Asia and Australia and is available from NOVA Chemicals and its molding partners. ARCEL resin runs on standard expandable polystyrene (EPS) molding equipment, processes more easily than competitive materials and is recyclable in the polystyrene recycling stream.
NOVA Chemicals produces commodity plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. We work with a commitment to Responsible Care® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at www.novachemicals.com.
Loyal Chemical Industrial Corporation was founded in 1976 and specializes in a full range of EPS production, using the brand name King Pearl. Within 13 years of entering the Chinese market, Loyal Chemical has become the largest EPS manufacturer in Asia, with an annual capacity of more than 1.5 billion pounds (700 kilotonnes). Loyal Chemical is a reliable and respected private organization led by the owner and founder, Mr. Y.C. Liao.
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Responsible Care® is a registered trademark of the Canadian Chemical Producers´ Association (CCPA) in Canada and is a registered service mark of the American Chemistry Council (ACC) in the United States. |
