Nova Chemicals Corp. is completing a major polyethylene resin expansion in Ontario and is working toward a goal of generating 30 percent of its PE sales from recycled materials.
The Calgary-based firm also is moving closer to opening its first mechanical recycling plant for PE film in Connersville, Ind.
"We're focused on circularity and having the right infrastructure to do that," CEO Roger Kearns said at NPE2024. "We have to be able to make the resins that the major brands want. And we need to make sure that recycling of those products is possible."
He added that Nova will export a larger amount of PE from its billion-pound expansion in Sarnia. The firm currently exports, at most, 15 percent of its PE output outside North America. The industry average for North American PE makers is approaching 50 percent export.
"[North America] has the cost advantage to run a global polyethylene business," Kearns said.
On the new product front, Kearns said Nova will re-enter end markets for thin-wall injection molding. Applications for those resins include food packaging.
At a press event, John Thayer, sales and marketing senior vice president, said Nova is seeing "extremely great interest" in recycled PE. "Decarbonization is a big area of focus for our customers," he added.
In Indiana, Nova has partnered with packaging giant Novolex Holdings Inc. on the venture. Novolex will operate the facility, which will employ about 125 and produce more than 100 million pounds of Nova's Syndigo-brand recycled PE resin per year.
The new recycling plant is expected to be fully operational by the end of 2025. Thirteen storage silos already have been installed at the site.
"We're leaning heavily into mechanical recycling," Greg DeKunder, circular solutions vice president, said. "We're still looking into advanced recycling, but mechanical recycling is here now, and it's low-carbon."
He added the site is in a good location since it's close to several Midwest U.S. metro areas and is near several distribution businesses that use a large amount of PE film.
PE Marketing Vice President Sarah Marshall said Nova is working to make sure its customers can process its Syndigo recycled resins on the same equipment they use to make existing products.
"It's important that [customers] can process the material on the same lines at commercial speeds," she added.
Also at NPE2024, Nova (W207AB) introduced a new grade of Surpass-brand PE resin that offers what officials said is the highest barrier performance of any PE grade on the market. They added that the new grade has consistent moisture-barrier performance across a broad range of processing conditions and delivers a new level of protection for moisture-sensitive layers and products in food packaging.
Nova is one of North America's largest PE resin makers. The firm employs almost 2,500 worldwide and is wholly owned by Mubadala Investment Co.
Nova Chemicals Corp.
W207AB