Samsung collects Borouge contract

Plastics manufacturer Borouge has awarded a contract worth US $300 million (AED1.1 billion) to Samsung Engineering for the construction of a new olefins conversion unit (OCU) at its Borouge 2 facility in Ruwais, Abu Dhabi.

The unit, which will convert ethylene into propylene to feed two new Borstar technology polypropylene plants, will be the world's largest, using ABB Lummus technology.

The total annual output from the OCU will be 752 kilotonnes of propylene and 39 kilotonnes of butane-1.

Work on the OCU will begin this month and is scheduled to be completed by mid-2010.

Harri Bucht, CEO, Borouge production company, said: "The signing of this contract, along with the other Borouge 2 packages, is testament to the momentum of the Borouge 2 project."

Borouge, which is part-owned by Abu Dhabi National Oil Company (ADNOC), began the expansion project in January this year with the signing of a $1.3 billion contract with Linde Engineering/CCC for the construction of a new ethylene cracker.

Earlier this month, the company signed two contracts worth $3.1 billion for the expansion of its production facilities.

The first deal, worth $1.85 billion, was 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.

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

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

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