JOLIET, Ill. (AP) — British chemical company Ineos PLC and plastics and chemicals maker Nova Chemicals Corp. said Thursday their combined joint venture company plans to shut down its Belpre, Ohio, polystyrene plant by Jan. 31.
Nova Chemicals said it will take a $32 million write down related to the closure in the fourth quarter, and record $3 million in severance and other costs. Nova also will take $30 million fourth-quarter charge related to the previously announced closure of another plant in Montreal.
The companies said the closure will reduce the joint venture's fixed costs by about $9 million per year, and will affect 35 employees.
The shutdown will cut the joint venture company's polystyrene production capacity by about 12 percent, and reduce industry wide production capacity in North America by about 4 percent.
Polystyrene is a hard plastic used in items ranging from packaging foam to kitchen appliances.
Nova shares rose 29 cents to $32.33 in midday trading.