Combining an understanding of end-users’ unmet needs with unique technology led NOVA Chemicals to begin a number of downstream business development projects in 2005. We expect these opportunities to position the Company to capture more of the value in the chain.

We are working with market leaders in order to combine their market access with NOVA Chemicals’ resins and application technology.

The additional margin captured through royalties and licensing fees is substantially greater than the margin NOVA Chemicals would see on the sale of resins alone.

IMAGE TECHNOLOGY
In October 2005, NOVA Chemicals introduced IMage technology, a unique technology used to manufacture “in-mold labeled” expandable polystyrene cups and containers. IMage technology sets a new standard in the premium cup and container market by delivering a revolutionary combination of outstanding graphics and hot or cold insulation. Cups and containers made with IMage technology eliminate the need for “double-cupping” or protective paper sleeves.

NOVA Chemicals began to build development partnerships with cup manufacturers in the United States, Europe and Asia in 2005. Cups and containers made with IMage technology are now commercially available.

CONSTRUCTION
Building on early successes in South America, NOVA Chemicals began to expand into the trillion-dollar, global building and construction industry in 2005.

Insulated Concrete Forms (ICFs). ICFs are lightweight, highstrength, permanent concrete forms with built-in insulation. Used for foundations and exterior walls, ICFs replace masonry and other traditional construction methods to produce quality homes in less time, with less expense and with fewer skilled workers, making this new construction technology ideal for developing markets such as Mexico, India and China. The Company’s current commercial targets are Chile, and the Mexican market through its new joint venture, NOVIDESA.

Wall Systems. In 2005, NOVA Chemicals signed a joint development agreement with Dietrich Metal Framing to produce composite panels that are made in a single step from expandable polystyrene and steel. Dietrich is the world’s largest producer of metal framing and finishing products.

Lightweight Concrete. NOVA Chemicals has developed proprietary expandable polystyrene technology to produce lightweight concrete, a material that delivers significant cost and design advantages for construction markets. We are exploring opportunities to license this groundbreaking technology.

INNOVATION IN ROTATIONAL MOLDING
NOVA Chemicals joined forces with several of the largest and most innovative rotational molders in North America to form a Rotomolding Network in 2005. This network facilitates the development and nationwide sharing of rotomolded product designs – all specified with NOVA Chemicals’ SURPASS polyethylene resins.

Historically, the growth of rotomolding applications has been constrained by the small scale and limited geographic reach of most rotomolders, because rotomolded parts are large, hollow and expensive to ship long distances. The Rotomolding Network gives large end-users a national network of rotational molding suppliers, which enables the availability and consistency of coverage from coast to coast. For example, in late 2005, the first polyethylene industrial dumpster was produced using SURPASS resins. Compared to heavy steel dumpsters, these new polyethylene dumpsters are expected to significantly improve productivity for waste haulers.