Nova Chemicals Corp. has extended force majeure conditions for polyethylene produced at its plant in Sarnia, Ontario.
The extension is a result of mechanical problems affecting the restart of ethylene production at a Nova site in Corunna, Ontario. The conditions also apply to ethylene, propylene and related products produced in Corunna, officials said in a Dec. 1 news release.
Nova originally declared force majeure on PE and the other products Nov. 7 - after a maintenance turnaround took longer than planned - but expected to have the situation resolved in late November.
The extension is expected to increase Nova's fourth-quarter financial loss from the shutdown to between $60 million and $70 million.
Officials with Pittsburgh-based Nova said the firm's PE customers are receiving material on allocated rates. Nova operates more than 1.2 billion pounds of annual PE capacity in Sarnia, with most of that production in high density PE.