Borouge Consortium to Develop Speciality Polyolefins Complex in China

Borouge to develop specialty polyolefins complex in China

Image credit: A consortium of Abu Dhabi state-backed firms, led by Borouge, has signed an agreement with China's Wanhua Chemical and Wanrong New Materials (Fujian) to construct a specialty polyolefins complex in Fuzhou, Fujian Province. The consortium, Borouge, ADNOC Group and Borealis, plans to set up a Sino-foreign joint venture with Wanrong New Materials (Fujian), with a shareholding ratio of 50:50 respectively. The proposed complex is projected to produce 1.6 million tonnes per annum of speciality polyolefins. The project's final structure and financial commitments will be determined after the feasibility study, which will also study the use of artificial intelligence (AI) solutions for automated plant operations. Borouge has a significant presence in China, operating an application centre and a compounding centre in Shanghai. Last year, nearly 30 per cent of the company's revenue came from China, underscoring its dedication to growth in the country. "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," said Hazeem Sultan Al Suwaidi, CEO of Borouge. "The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks." The polyolefins producer aims to strengthen its presence in China, the world's largest and fastest-growing polyolefins market. The project will leverage Borouge and Borealis' industry and commercial expertise, as well as technology, supply chain, and logistics synergies across the ADNOC. The polyolefins venture will also leverage Wanhua Chemical's robust network in the Chinese market, as well as the country's competitive construction and energy costs. The partners are committed to developing products that promote the circular economy while powering the polyolefins complex with renewable energy. The Abu Dhabi-listed company provides premium materials to various customer segments, including infrastructure, renewable energy, electric vehicles and advanced packaging. The agreement, which is subject to regulatory approvals, will bolster Borouge's premium position in the rapidly expanding market for high-quality, differentiated materials, marking a significant step in its international growth ambitions. Borouge's quarterly net profit jumped 37 per cent year-on-year to $273m in Q1 2024, driven by stronger pricing premia, a focus on high-value product segments, and cost efficiencies. Read: ADNOC buys 25% stake in 68-year-old Austrian chemical group

Borouge, ADNOC, Borealis plan speciality polyolefins complex in China

The proposed complex in Fujian Province is forecast to produce 1.6 MTPA of speciality polyolefins A consortium comprising UAE's Borouge Plc, ADNOC and Austria's Borealis has initiated a joint feasibility study for a proposed greenfield speciality polyolefins complex in China. The consortium has signed a project collaboration agreement with China's Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical, Borouge said in a statement published on the Abu Dhabi Securities Exchange on Tuesday. The proposed complex in Fuzhou, Fujian Province, is forecast to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins. The consortium plans to establish an equally owned Sino-foreign joint venture with Wanrong New Materials (Fujian), subject to customary regulatory approvals. The final structure of the project and financial commitments will be confirmed following the completion of the feasibility study. It will also explore using artificial intelligence (AI) solutions to support automated plant operations. The planned specialty polyolefins complex will be powered by 100% zero-carbon electricity. Asia is a hub for polyolefin demand, with China accounting for 40% of global consumption. Almost 30% of Borouge's revenue is derived from China, the statement said. (Editing by Brinda Darasha; [email protected])

Borouge signs project collaboration agreement for speciality polyolefins complex in China as part of consortium

Borouge, in a consortium with ADNOC and Borealis, has initiated a joint feasibility study for a proposed greenfield project in collaboration with Wanhua Chemical Proposed complex in China set to produce 1.6 MTPA of speciality polyolefins, supporting Borouge's ambitions to reinforce its market position in Asia Project to capitalise on Borealis' state-of-the-art proprietary Borstar® technology and Borouge's extensive sales network Parties intend to utilise 100% zero-carbon electricity for the planned complex, underscoring their commitment to sustainability and reducing emissions ABU DHABI, UAE - Borouge Plc, a leading petrochemicals company providing innovative and differentiated polyolefins solutions, today announced an acceleration of its growth plans in its core Asia market, through a strategic consortium, aimed at developing a speciality polyolefins complex in China. The consortium, comprising Borouge, ADNOC and Borealis, has signed a Project Collaboration Agreement (PCA) with China's Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical. The proposed complex in Fuzhou, Fujian Province, is set to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins leveraging both Borealis' cutting-edge proprietary Borstar® technology and Borouge's extensive sales network. The consortium intends to establish a Sino-foreign joint venture with Wanrong New Materials (Fujian), with a shareholding ratio of 50:50 respectively, subject to customary regulatory approvals. His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC and Chairman of Borouge, witnessed the signing ceremony in Beijing, along with Liao Zengtai, Chairman of Board of Wanhua Chemical and Fuzhou Mayor, Wu Xiande. Hazeem Sultan Al Suwaidi, CEO of Borouge PLC, participated in the ceremonial signing on behalf of Borouge as part of the consortium, and Kou Guangwu, CEO of Wanhua Chemical Group, participated on behalf of Wanhua Chemical. Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said: "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. The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks. We look forward to collaborating with our partners to swiftly deliver a sustainable feasibility study that will support our commitment to continue reducing our emissions." This strategic initiative will reinforce Borouge's premium positioning in the fast-growing market for high-quality differentiated materials and represents a significant step in its international growth ambitions. As part of the consortium, Borouge is aiming to enhance its presence in China, the world's single largest and fastest growing polyolefins market, where petrochemical self-sufficiency is being prioritised and further expanding the company's strong market position. The proposed project will leverage Borouge and Borealis' industry and commercial expertise, as well as technology, supply-chain and logistics synergies across the ADNOC Group. It will also benefit from Wanhua Chemical's strong track record and network in the Chinese market, along with China's competitive construction and energy costs, as well as its accelerated execution timelines. The partners are committed to achieving net zero emissions and developing products that promote the circular economy and intend to power the planned specialty polyolefins complex with 100% zero-carbon electricity, supported by the local government. The final structure of the project and financial commitments will be established following the completion of the feasibility study, which will also explore artificial intelligence (AI) solutions to support automated plant operations. Asia serves as a hub for polyolefin demand, with China accounting for 40% of global consumption. Borouge has established a strong presence in China, operating an application centre and a compounding centre in Shanghai and in 2023, almost 30% of Borouge's revenue was derived from China, underscoring the company's commitment to drive strong growth in the country. Borouge supplies premium materials across a wide range of customer segments, including infrastructure, renewable energy, electric vehicles, and advanced packaging. -Ends- About Borouge Plc Borouge Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol: BOROUGE / ISIN AEE01072B225), is a leading petrochemicals company that provides innovative and differentiated polyolefin solutions for the infrastructure, energy, mobility, healthcare, agriculture and advanced packaging industries. Borouge employs more than 3,100 people and serves customers in over 86 countries across Asia, the Middle East and Africa. Founded in 1998 through a strategic partnership between ADNOC and Borealis, Borouge was formed to build and operate a polyolefins complex in Al Ruwais Industrial City, United Arab Emirates, which today is one of the world's largest integrated polyolefin complexes. ADNOC owns a majority 54% stake and Borealis holds a 36% stake in Borouge. To find out more, visit: borouge.com For further information, please contact: Rehab Ateeq VP, Global Communications [email protected] Samar Khan VP, Investor Relations [email protected]