Nova Chemicals Corp. plans to invest significantly in Middle East polyethylene production, said recently installed CEO Chris Pappas.
Speaking June 23 at NPE2009 in Chicago, Pappas said plans include a 1.1 billion to 1.2 billion-pound-per-year Advanced Sclair PE plant, and a 10 percent smaller gas-phase PE plant in the Middle East. The units could come on stream in 2014.
In May, a majority of Nova shareholders approved a takeover by International Petrochemical Investment Corp. of Abu Dhabi, United Arab Emirates.
IPIC brings the ability to invest in the Middle East, Pappas said.
He said Nova, with $7 billion in annual sales, could not invest in world-scale PE plants on its own.
Pittsburgh-based Nova also is investing in its North American PE capacity. Projects under way in Canada will add 350 million to 375 million pounds per year of extra PE to Nova's slate by 2011, according to Pappas.
He pointed out parallels between Nova and Borealis AG, also majority owned by IPIC. Both invest in low-cost feedstock markets, have similar business models and find customers where they can create value.