NOVA Chemicals makes $2-billion investment in Lambton

(Nova Chemicals)

NOVA Chemicals Corporation announced two significant growth projects for its Ontario operations involving a capital investment expected to exceed $2 billion in Lambton County.

NOVA Chemicals officials says this brings industry-leading manufacturing technology to Ontario, with improved product performance and increased energy efficiency.

Company official says the announcement marks the addition of two new large-scale capital investments in the Sarnia-Lambton region.

The expansion of NOVA Chemicals’ Corunna cracker by approximately 50 per cent will provide ethylene feedstock to a new polyethylene facility, NOVA Chemicals’ second Advanced SCLAIRTECH™ technology facility (AST2), NOVA Chemicals officials said in a press release.

The AST2 facility is designed to increase NOVA Chemicals’ polyethylene production capacity by approximately 950 million pounds (450 kilotons) per year.

Site preparations are currently underway for both projects, with start-up targeted for late 2021, company officials say.

“We are pleased to be moving forward with this growth opportunity and thankful for the support from the provincial government,” stated Naushad Jamani, Senior Vice President, Olefins and Feedstocks, NOVA Chemicals, in a press release.

“With this investment, we are bringing innovation to the North American and global marketplace, investing in our highly skilled people and creating a solid future for the communities in which we operate. This was made possible by our talented teams across Canada, the strong support of the community and collaboration with Ontario.”

The province is partnering with NOVA Chemicals to create 145 new jobs in the Sarnia-Lambton region and 1,400 direct and indirect jobs in the province over 10 years.

“This strategic investment is a vote of confidence in Ontario’s economy and a crucial step forward for the Sarnia-Lambton region’s globally competitive chemical cluster,” stated Brad Duguid, Minister of Economic Development and Growth, in a press release.

“The project will create jobs, drive R&D collaboration and provide long-term benefits not just for the region but for all of Ontario.”

Provincial officials say the project will also provide a boost to regional construction, manufacturing and industrial services, and will help make the Sarnia-Lambton region a global chemical manufacturing powerhouse. The province is committed to protecting the environment and the safety of all workers, and will ensure that NOVA is in compliance with applicable regulations before providing funding to the company.

More details from the province:

– Ontario’s chemical sector is the largest in Canada, employing 29,000 people (2016).

– Ontario is investing up to $100 million through the Jobs and Prosperity Fund for this project.

– The project is expected to increase real GDP in Ontario by about $1.9 billion over the next decade. The investment will return $120 million in incremental provincial tax revenues and create 2,000 direct and indirect jobs over 10 years.

– The investment will retain another 462 jobs at NOVA Chemicals and create a further 1,400 direct and indirect jobs in the province over 10 years.

– NOVA Chemicals is a founding member of Responsible Care®, a globally adopted industry set of principles that ensures strict health, safety and environmental standards for chemical operations. The company won the 2015 Minister’s Award for Environmental Excellence from the Ontario Ministry of the Environment and Climate Change.

– Through this investment, the company is expecting to see a reduction in GHG emissions intensity by approximately 25 per cent for the period of 2016 to 2022 (projected facility start-up).

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