NOVA Chemicals and BASF Improve Position in Styrene Monomer
PITTSBURGH & MT. OLIVE, N.J. Aug. 2, 2002 NOVA Chemicals Corporation and BASF Corporation have signed a long-term styrene monomer supply contract. The agreement commits NOVA Chemicals to supply monomer feedstock to BASF's downstream styrenics business in the NAFTA region. In addition, the contract commits BASF to supply styrene monomer to NOVA Chemicals' European downstream styrenics business.
The companies stated that the agreement gives both producers a low-cost styrene monomer position for their respective solid polystyrene and expandable polystyrene businesses. The supply will be made from existing company facilities, in addition to a modest debottlenecking of NOVA Chemicals' Bayport, Texas, plant. NOVA Chemicals' total styrene monomer capacity will increase by 15% to 3.05 billion pounds per year.
"This arrangement with BASF helps us continue to reshape our styrenics business," said Chris Pappas, NOVA Chemicals' Styrenics business president. "By improving our styrene monomer position, we'll lower costs, enhance our European supply security, and add only minimal new capacity to the industry."
According to Dr. Fred Baumgartner, president of BASF's Styrenics operating division, "For BASF, this agreement will give us a long-term, secure, competitive supply of styrene monomer in North America. This joint approach to ensuring supply streams is mutually beneficial to both companies, and reflects a key component of BASF's NAFTA strategy of pursuing strategic alliances that help strengthen our overall performance."
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