NOVA Chemicals Corporation

NOVA Chemicals Corporation

September 14, 2005 11:18 ET

NOVA Chemicals Launches Joint Venture With GRUPO IDESA

PITTSBURGH--(CCNMatthews - Sep 14, 2005) -

NOVA Chemicals Corporation (NYSE:NCX)(TSX:NCX) and GRUPO IDESA today announced they have signed binding agreements to form a 50:50 joint venture in Mexico, called NOVIDESA, SA de CV. The joint venture plans to commence operations on October 1, 2005.

Jose Luis Uriegas, currently Chief Executive Officer of GRUPO IDESA, will serve as President of NOVIDESA.

"We are excited about the excellent prospects of this new joint venture," said Uriegas. "NOVIDESA plans to be an industry leader in high-value expandable polystyrene for construction and packaging applications. In addition, we look forward to distributing NOVA Chemicals' solid polystyrene in Mexico."

Chris Pappas, President of NOVA Chemicals' Styrenics business, said, "We are very pleased to partner with GRUPO IDESA as we introduce NOVIDESA's leading EPS process technology, innovative application designs and value-added polymer products to the Mexican market."

As previously announced, the transaction to form the joint venture will be cashless. NOVIDESA's EPS production will come from GRUPO IDESA's Apizaco facility in the state of Tlaxcala (located 120 km or 75 miles east of Mexico City). To meet expected growth in the construction market, the joint venture will convert its solid polystyrene (SPS) production at the Apizaco facility to higher value EPS production.

GRUPO IDESA, a private Mexican company, has been a leader in the Mexican petrochemical market for 50 years and a polystyrene producer for 26 years. GRUPO IDESA is one of the five largest petrochemical companies located in Mexico and is fully committed in its operations to Responsible Care and the ISO-9001:2000 certification program. Visit GRUPO IDESA on the Internet at

NOVA Chemicals produces commodity plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. We work with a commitment to Responsible Care® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at

Media inquiries, please contact:
Greg Wilkinson - Vice President, Public Affairs
Tel: +1 412.490.4166

Investor Relations inquiries, please contact:
Chris Bezaire - Vice President, Investor Relations
Tel: +1 412.490.5070

Ing. Victor Grajales - Promotion Manager
Tel: 52-55-5082 2040

Photographs are available upon request.

Forward-Looking Information

The information in this news release contains forward-looking statements. By their nature, these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. These risks and uncertainties include: commodity chemicals price levels (which depend, among other things, on supply and demand for these products, capacity utilization and substitution rates between these products and competing products); the realization of announced price increases; feedstock availability and prices; operating costs; realizing synergy and cost savings targets; the impact of competition; changes in customer demand; loss of the services of any of the Joint Venture's officers; and uncertainties associated with the Mexican economy and the growth of the construction and packaging market.

Responsible Care® is a registered trademark of the Canadian Chemical Producers' Association (CCPA) in Canada and is a registered service mark of the American Chemistry Council (ACC) in the United States.

Contact Information

  • NOVA Chemicals Corporation
    Media inquiries: Greg Wilkinson, 412-490-4166
    Investor Relations inquiries: Chris Bezaire, 412-490-5070
    GRUPO IDESA: Ing. Victor Grajales, 52-55-5082 2040