A&R Logistics, a provider of bulk resin transportation, has bought a 64-acre plant site in Chesapeake, Va., from Nova Chemicals Corp.
Terms of the deal were not disclosed. Pittsburgh-based Nova stopped production at the site in mid-2006. The plant had operated 300 million pounds of capacity for solid polystyrene and 110 million pounds of capacity for styrenics-based compounds.
In addition to a 45,000-square-foot compounding operation, the purchase includes a 70,000-square-foot warehouse, a 65-car rail yard and 15 million pounds of silo storage. The site also has port access and is served by multiple rail providers.
``The property offers us a unique opportunity to add more value to the current scope of services we provide,'' A&R Chief Executive Officer Jim Bedeker said in a Jan. 7 news release from the Morris, Ill.-based firm.
``The rail and port access, combined with a facility infrastructure specific to the dry bulk business, just doesn't get any better than this,'' Bedeker added.
The site no longer will be used for PS production, but A&R President Jeff O'Connor said his firm ``intends to begin ramping up the compounding, rail and silo operations as quickly as possible.''
In a Jan. 8 phone interview, O'Connor said A&R plans to do toll compounding for its customers on the six extrusion lines - a mix of single- and twin-screw equipment - that Nova had operated. A&R's customer list includes more than 100 resin makers, compounders and distributors. The Chesapeake effort will be A&R's first compounding venture.
A&R has hired six former Nova compounding employees and plans to hire more, O'Connor said. It expects to employ a total of 70 at the site and may use part of the property for biodiesel fuel production through a proposed venture with another company.
The Chesapeake site will be the largest of A&R's 22 locations based on acreage, and one of its largest in square footage. A&R also manages a fleet of about 700 semi-tractor rigs and 1,100 bulk and dry van trailers. Founder Bedeker is majority owner.
The firm did not disclose sales data.