Nova Chemicals sets joint venture with Reliance

TORONTO (Reuters) - Canada's Nova Chemicals Corp (NCX.TO: Quote, Profile, Research, Stock Buzz)(NCX.N: Quote, Profile, Research, Stock Buzz) said on Thursday it has signed a letter of intent with India's Reliance Industries Ltd (RELI.BO: Quote, Profile, Research, Stock Buzz) to form a joint venture to design and construct a range of energy efficient buildings in India.

The venture is expected to be operational by the third quarter of 2008 after the finalization of formal agreements, Nova said.

Nova, Canada's biggest raw-plastics maker, said the venture will use its green construction technology to create buildings that will minimize resource consumption and decrease ongoing energy demand by as much as a third.

The Calgary, Alberta-based company said unique components of the buildings will be based on expandable polystyrene and will include structural and nonstructural roof, decking and wall panels.

The first steps toward manufacturing components in India are under way and construction will begin with buildings for Reliance Retail, a major subsidiary of Reliance Industries.

"India has a $60 billion construction market that is growing at about 20 percent per year," Nova President and Chief Operating Officer Chris Pappas said in a statement.

"The potential for energy efficient buildings in India is very exciting and these systems are an excellent fit for Reliance Retail's strategy," he said.

(Reporting by Leah Schnurr; Editing by Peter Galloway)