Helm AG to sell Nova Chemicals' styrene in Europe

HAMBURG (CP) - Nova Chemicals Corp. has signed a deal in which Germany's Helm AG will take over Nova's styrene sales and marketing operations in Europe. Nova said Tuesday the long-term deal will take effect April 1 and includes the transfer to Helm of all sales and marketing for the Canadian-U.S. company's existing European styrene sales. Styrene is used to make foam cups, plates and other consumer products. Nova doesn't produce styrene in Europe, but obtains supplies from various sources, including transatlantic swap arrangements with other producers. Financial details of the agreement were not released. "Nova Chemicals and its customers will benefit from Helm's extensive logistics and terminal network, and their strong marketing and sales organization," said Martin Pugh, Nova's vice-president and managing director for Europe. "In addition, by building this relationship with Helm, Nova Chemicals will be able to focus its resources on exports to other regions." Rolf Meyer-Ottens, a member of Helm's executive board, called the deal a "major milestone" for the German company. "We are gradually developing our company into a multifunctional business group in chemicals," he said. Nova Chemicals produces a variety of petrochemicals and other compounds at 18 plants in Canada, the United States, France, the Netherlands and the United Kingdom. Nova also owns 37 per cent of Vancouver-based Methanex Corp., the world's largest producer of methanol, used as a building block for fuel additives and other produucts. Nova was created out of Nova Corp. after the gas pipeline and chemicals company sold its pipeline assets to TransCanada PipeLines in a big energy deal in the late 1990s. Although Nova is headquartered in Pittsburgh, close to its major U.S. customers, the company has major petrochemical operations in Alberta. In trading on the Toronto Stock Exchange on Tuesday, Nova shares (TSX:NCX) fell 29 cents to $27.77 Cdn.