Borouge in $3bn plant expansion

Abu Dhabi Polymers Company (Borouge) today signed two contracts worth $3.1 billion for the expansion of its production facilities in the emirate.

The expansion project, Borouge 2, will increase the plastics manufacturer’s annual production capacity to two million tonnes of polyolefins, including for the first time, polypropylene.

The first $1.855 billion deal is with Italian engineering and construction firm Tecnimont for the development of three new polyolefins units and associated material handling facilities, laboratory facilities and marine works.

It is the largest supplier contract Borouge has signed since the company’s inception in 1998.

The second contract, worth $1.23 billion, is with Spanish engineering company Tecnicas Reunidas for the construction of offsite and utility facilities for the expanded plant.

Borouge, which is part-owned by Abu Dhabi National Oil Company (ADNOC), said preliminary work would begin immediately and both contracts are scheduled for completion in 2010.

“Today marks a major step forward in our expansion plans and signing these contracts lays down a path to tripling our production capacity by 2010,” said Harri Bucht, Borouge production company CEO.

“This is a major project that demonstrates the commitment and ambition not just of Borouge but of the petrochemical industry in the Gulf. We look forward to working closely with our new partners to make it a reality,” he added.

Borouge began the expansion project in January, signing a $1.3 billion contract with Germany-based Linde Engineering for the construction of a new ethylene cracker.

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