Mexico, DF.- GRUPO IDESA and NOVA Chemicals Corporation today announced it has reached an agreement in principle t o form a 50:50 joint venture (JV) in Mexico. The new venture, called NOVIDESA, SA de CV, plans to be a market leader in high value Expandable Polystyrene (EPS) for applications such as construction and packaging in the growing Mexican market. NOVIDESA will also distribute NOVA Chemicals' solid polystyrene in Mexico. The new JV is expected to commence operations in September 2005.
GRUPO IDESA`s Chief Executive Officer, Jose Luis Uriegas, said, "We are delighted to bring outstanding technology, innovative products and applications to both new and existing customers in Mexico. We are confident that the new products offered by the JV will help meet the performance requirements of growing Mexican markets, particularly through highly efficient, high-tech construction applications."
Jose Luis Uriegas added: "We are very pleased to partner with NOVA Chemicals, a world class company with an outstanding reputation and leader in the Styrenics and Polyethylene businesses worldwide. This JV is the result of a productive long term relationship between the two companies."
"This JV leverages our technology research investment and intellectual property and builds on our relationship with GRUPO IDESA, an ideal partner for us in Mexico," said Chris Pappas, President of NOVA Chemicals' Styrenics Business. "We are very pleased to bring our industry-leading EPS process technology, exclusive application designs, and value-added polymer products to the rapidly expanding Mexican market."
EPS production for the new JV will come from GRUPO IDESA´s Apizaco facility in the state of Tlaxcala (located 120 km east of Mexico City). The JV plans to convert solid polystyrene (SPS) production to higher value EPS production to meet the expected growth in construction application demand.
NOVA Chemicals is a leading producer of commodity plastics and chemicals, with manufacturing operations in Canada, the United States and Europe. The company is a worldwide leader in solid polystyrene and EPS manufacturing and technology, as well as the largest producer of styrene monomer in the NAFTA region. NOVA Chemicals is committed 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 www.novachem.com.
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 www.grupoidesa.com .
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