Nova Chemicals Inc. completed its purchase of Arco Chemical Co.'s plastics business, Nova announced Oct. 1. The Calgary, Alberta, resin producer also said it is moving its U.S. sales office to Pittsburgh from Leominster, Mass. Nova's purchase of the Arco business extends its styrenic polymers business to include expandable polystyrene and sty-rene maleic anhydride. The two firms agreed to the deal in June. Nova said it paid US$160 million including net working capital for the business.
Nova now has styrenic polymers capacity of 1.3 billion pounds per year, making it the second-largest producer in North America after Dow Chemical Co. of Midland, Mich. It acquired Arco's Beaver Valley, Pa., operation, which makes Dylite EPS, Dylark SMA and Dylene PS resin, and its Painesville, Ohio, Dylite production facility.
Nova plants mainly make commodity crystal and high-impact PS grades, at Indian Orchard, Mass.; Decatur, Ala.; and Montreal.
Nova also has an arrangement for Monsanto Co. to toll produce PS at Addiston, Ohio.
Arco said its styrenic polymers business was profitable but it wants to focus on propylene oxide and derivatives such as polyols, areas in which it sees itself as a leader.
Nova said its U.S. sales office relocation, scheduled for mid-November, will allow it to serve customers more efficiently. It also plans to move its PS technical center from Leominster to Beaver Valley, Pa., by June. Paul Clark, Nova Chemicals vice president of technology, said in a news release that combining technical operations at one site will strengthen customer service.