Nova Chemicals Corp. plans to spend US$80 million on a two-year project to expand its polyethylene capacity at plants in the area of Sarnia, Ontario.
The Pittsburgh-based company's project will add a total of 250 million pounds of annual capacity. The expansion stems from last year's modernization at its Corunna, Ontario, oil-fed cracker, which boosted ethylene volumes and improved efficiency.
The new project includes upgrading capacity at a low density PE plant in Mooretown, Ontario, optimizing a high density PE plant at the same site, and streamlining HDPE and linear LDPE plants at Corunna.
Jeff Lipton, Nova Chemicals' chief executive officer, said in a news release: ``These projects should have about a two-year payback and will generate meaningful earnings growth for our shareholders in every part of the industry business cycle.''
Despite the investment at Sarnia, Nova Chemicals' prime site remains in Alberta, where it enjoys what Lipton describes as the ``Alberta Advantage'' due to natural gas prices in the province.
In other news, Nova announced that Chris Pappas, formerly senior vice president and chief operating officer, was appointed president and chief operating officer, effective Jan. 1.
Lipton continues in his role as CEO.