Mexico’s Alpek to buy NOVA's expandable styrenics business
Mexico-based Alpek agreed to buy from NOVA Chemicals Corp. their expandable styrenics business through the purchase of BVPV Styrenics, which owns assets including a 123,000 ton/year expandable polystyrene (EPS) facility in Pennsylvania.
The Monaca, Pennsylvania plant also has capacity to produce 36,0000 tons/year of the registered trademark foam Arcel, and another plant in Ohio with capacity to produce 45,000 tons/year of EPS.
“By adding two new EPS sites in the U.S., Alpek will now be able to serve its existing and new customer base with increased efficiency,” and lower logistics costs, a company press release said on Oct. 19.
Alpek did not disclose any transaction amount.
The Mexican company said the purchase fits plans to expand its construction and packaging segments, both of which require EPS. Arcel is an EPS-PE copolymer with packaging applications including protection of electronics.
The Monaca facility includes a research department that Alpek said will work to develop more sustainable products like biodegradable EPS.
“This acquisition is both attractive from a financial perspective as well as fully aligned with Alpek’s long-term growth strategy,” said Alpek’s CEO Jose de Jesus Valdez. Alpek will complete the transaction by year-end.
Alpek, with $6.2 billion in 2019 revenue, operates 28 plants in several countries. NOVA is headquartered in Canada. Alpek is the biggest EPS producer in the Americas.
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