Nova Chemicals Corp. has sold its expandable styrenics business to Mexican conglomerate Alpek SAB de CV for an undisclosed price.
The sale includes manufacturing plants in Painesville, Ohio, and Monaca, Pa. Officials with Nova in Calgary, Alberta, said in an Oct. 19 news release that the sale is an important step in the firm's plan to focus on its olefin and polyethylene business, which includes additional investments to advance a global circular economy for plastic.
"This transaction provides us with immediate cash generation to further strengthen our balance sheet and focus on the safe and successful completion and startup of our world-class Advanced Sclairtech technology facility under construction in [Sarnia,] Ontario," President and CEO Luis Sierra said in the release.
Alpek CEO Jose de Jesus Valdez Simancas added that as a leader in EPS in the Americas, his firm "sees strong business opportunities associated with this purchase."
The business being acquired makes expandable polystyrene resin and Arcel-brand styrenic copolymers. Those materials are used in packaging, construction, cups and containers and other markets.
Monterrey, Mexico-based Alpek is a leading global supplier of PET and purified terephthalic acid. In North America, the firm owns and operates Charlotte, N.C.-based PET maker DAK Americas, as well as Mexican polypropylene maker Indelpro. Alpek also is a leading supplier of expandable PS and recycled PET in the Americas.
In 2019, Alpek posted sales of $6.2 billion. The firm operates 28 plants in the U.S., Mexico, Canada, Brazil, Argentina, Chile and the United Kingdom and employs more than 6,000.
Nova is wholly owned by Mubadala Investment Co. of the Emirate of Abu Dhabi, United Arab Emirates.