Borouge Consortium To Build Specialty Polyolefins Complex In China

Borouge Plc, a major player in the petrochemicals sector, has announced plans to expand its footprint in Asia. The company aims to develop a speciality polyolefins complex in China through a strategic consortium. This consortium includes Borouge, ADNOC, and Borealis, collaborating with China's Wanhua Chemical and its subsidiary Wanrong New Materials (Fujian).

The proposed complex in Fuzhou, Fujian Province, will produce 1.6 million tonnes per annum of speciality polyolefins. This production will utilise Borealis’ proprietary Borstar technology and Borouge’s extensive sales network. The consortium plans to form a joint venture with Wanrong New Materials (Fujian), each holding a 50% stake, pending regulatory approvals.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Borouge, attended the signing ceremony in Beijing. He was joined by Liao Zengtai, Chairman of Wanhua Chemical, and Fuzhou Mayor Wu Xiande. Hazeem Sultan Al Suwaidi, CEO of Borouge PLC, signed on behalf of Borouge, while Kou Guangwu represented Wanhua Chemical.

Hazeem Sultan Al Suwaidi stated: "This strategic growth initiative builds on the robust economic ties between the UAE and China and offers the potential to create value for Borouge shareholders by accelerating our expansion in China." He highlighted that the project would benefit from partners' strengths in capital deployment, technology, innovation, logistics, and customer networks.

This initiative aims to bolster Borouge’s position in the high-quality differentiated materials market. It marks a significant step towards international growth ambitions by enhancing its presence in China’s rapidly growing polyolefins market.

Commitment to Sustainability

The project will leverage expertise from Borouge and Borealis across various domains such as industry knowledge, commercial operations, technology, supply-chain management, and logistics within the ADNOC Group. Additionally, it will benefit from Wanhua Chemical’s strong presence in China and competitive local construction and energy costs.

The partners are dedicated to achieving net zero emissions and developing circular economy products. They plan to power the new complex with 100 percent zero-carbon electricity supported by local government initiatives.

Focus on Innovation

The final project structure and financial commitments will be determined after completing a feasibility study. This study will also explore artificial intelligence solutions for automated plant operations.

Asia is a key market for polyolefin demand with China accounting for 40 percent of global consumption. In 2023 alone, nearly 30 percent of Borouge's revenue came from China. The company operates an application centre and a compounding centre in Shanghai.

Borouge supplies premium materials across various sectors including infrastructure, renewable energy, electric vehicles, and advanced packaging. This expansion aligns with their commitment to driving strong growth within these segments.

With inputs from WAM