NOVA Chemicals inadvertently stops production Ontario ethylene facility


OVA chemicals Corporation announced a temporary production interruption at its Corunna, Ontario, manufacturing facility. The interruption was the result of the inadvertent activation of a process shutdown switch, apparently caused by a contractor employee installing structural steel platforms. The facility sustained only minor damage during the shutdown and the company expects to be back in full production within two weeks.

As a result of the shutdown, the company has declared Force Majeure on propylene, crude C4's and other pipeline-delivered co-products. The Force Majeure is expected to remain in place until the plant returns to normal operating rates and inventory levels. The outage and associated loss of sales is expected to reduce second-quarter net income by approximately U.S. $8 million with an additional third-quarter impact of up to U.S. $3 million. This incident is unrelated to the extended outage in late 2005 and early 2006.

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