Nova Chemicals is ordered to pay Dow $1.08 billion for damages Dow incurred through 2012 related to the companies’ jointly-owned ethylene asset in Joffre, Alberta, Canada. This judgement was signed by The Court of the Queen’s Bench in Alberta, Canada.
The court found that Nova Chemicals failed to operate the ethylene asset at full capacity for more than 10 years, and furthermore, that Nova violated several contractual agreements related to Dow receiving its share of the asset’s ethylene production. These actions resulted in reduced productivity and sales for Dow.
The signed judgment relates to damages Dow incurred through 2012. Dow anticipates receiving an additional judgment for damages owed by Nova for the post-2012 period.
Additionally, the ethylene asset is now running at a higher utilization rate and giving Dow more ethylene from an advantaged feedstock position.
The judgment is subject to appeal.
