Borouge PLC announced on Tuesday that it is accelerating its growth plans in major Asian markets by entering into a strategic alliance to establish and operate a specialized polyolefin production complex in China. The alliance that includes Borouge, ADNOC and Borealis signed a cooperation agreement with China’s Wanhua Chemical Industries Company and its subsidiary, Wanrong New Materials (Fujian), according to which Borouge will begin a joint feasibility study for the new complex project. .
The joint feasibility study aims to establish a complex in Fuzhou (Fujian Province) to produce 1.6 million tons of specialty polyolefin annually. The complex will be powered by Borealis’ Borstar technology and benefit from Borouge’s extensive sales network. The partners (the alliance and Wanrong New Materials “Fujian”) intend to implement this joint project equally (50% for the alliance and 50% for Wanrong New Materials) after obtaining approval from the relevant regulatory authorities.
- Signing ceremony
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group companies, and Chairman of the Board of Directors of Borouge, Liao Zhengtai, Chairman of the Board of Directors of Wanhua Chemical Industries, and Wu Xiandi, Mayor of Fuzhou, signed witnessed the event. Hazeem Sultan Al Suwaidi, CEO of Borouge PLC, participated on behalf of Borouge as part of the alliance, along with Cao Quanguo, CEO of Wanhua Chemical Industries Group, on behalf of Wanhua Chemical Industries.
- Great value for shareholders
On this occasion, Hazim Sultan Al Suwaidi, CEO of Borouge said: “This strategic growth initiative builds on the strong economic ties between the UAE and China and offers the opportunity to create significant value for Borouge’s shareholders by accelerating the company’s expansion and presence. In China, one of the largest petrochemical markets in the world”. After the successful completion of the feasibility study, this complex will benefit from the great potential of our partners and major shareholders and to deploy significant capital and take advantage of world-leading technology, innovation and technical expertise, in addition to extensive logistics services and customer networks. We look forward to working with our partners to complete a feasibility study that supports our commitment to reducing emissions as soon as possible.”
This strategic move will help strengthen Borouge’s presence in the Asian market, which is seeing rapid growth in demand for distinctive, diverse and high-quality materials as the company strives to achieve its international growth ambitions. As part of the alliance, Borouge is leveraging its position to strengthen its presence in China, the world’s largest and fastest growing polyolefins market, where achieving self-sufficiency in petrochemicals is also one of its top priorities. to improve the company’s strong position in the market.
- “Borouge” and “Borealis” experiences
The projects will benefit from the industrial and commercial experience and innovative technologies of Borouge and Borealis, as well as the supply chain and logistics support of the ADNOC Group in the Chinese market, as well as China’s competitive construction and energy costs and the rapid implementation of these projects. The partners are committed to achieving net zero emissions and will work to develop products that support the circular economy. The partners plan to operate the planned specialized polyolefin production complex with 100% carbon-free electricity, with the support of the local government.
The final structure and financial commitments of the project will be formulated after the completion of a detailed feasibility study, and initiatives to use artificial intelligence solutions and tools to automate the operations of the complex will also be revealed.
It is worth noting that Asia is considered a major driver of polyolefin demand, with China’s share of around 40% of global polyolefin consumption. Borouge already has a strong presence in China, where it has an application center and a polyolefin compound production unit in Shanghai. In 2023, Borouge received around 30% of its revenue from China, which confirms the company’s commitment to drive strong growth in this country. Borouge provides premium materials to a wide range of customer sectors, including infrastructure, renewable energy, electric vehicles and advanced packaging.
