Nova Corp. and Borealis A/S will team up in a wire and cable materials joint venture in North and South America. Nova announced Sept. 26 that the two resin producers will merge technical, production and marketing operations in the 50-50 venture.
Borealis, based in Copenhagen, Denmark, will contribute its Borealis Compounds Inc. compounding plant in Rockport, N.J., to the venture.
The facility has 88 million pounds of annual capacity, Marc Godin, Nova Chemicals' marketing leader for wire and cable, estimated in a telephone interview from Nova's Calgary, Alberta, head office. Nova will supply base polyethylene resins and other polymers from two resin plants it runs in Sarnia, Ontario.
Godin said each firm focused on different markets and the venture will be able to offer a full product line for wire and cable insulation and jacketing. Nova mainly makes jacketing compounds for telecommunications applications. Borealis has emphasized power cable insulation, including carbon-black-loaded semiconductive compounds. Godin said Borealis' product line includes ``tree-retardant'' materials that resist failure in underground cable.
Godin said Union Carbide Corp. of Danbury, Conn., has been the major supplier of wire and cable compounds but ``the market wants alternative suppliers.''
He estimated the Nova-Borealis venture will account for 5-10 percent of market share in North America.
The partners expect the joint venture will begin operating on Jan. 1, pending corporate and government approvals.
Godin said they have not finalized details such as where the central sales office will be located.