Borouge to develop facility in China

Abu Dhabi-based plastics manufacturer Borouge said today it plans to develop a compounding facility in China to make high-performance plastic polymer compounds to be used in the motor and electric sectors.

Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis, said in a statement that the new facility will be constructed in Shanghai and will have an annual capacity of up to 50,000 tonnes.

“The compounding facility will provide polypropylene (thermoplastic polymer) solutions for the automotive industry including endurance and high impact interior and exterior applications such as dashboards, door panels and bumpers,” Borouge said in the statement, adding that compounds for electrical appliances will also be made.

The company also said the facility will be located to take advantage of the supply of supply of the Borstar polypropylene from its production plant in Ruwais, Abu Dhabi, and to serve current customers in Asian and Middle East markets.

The new facility in Shanghai complements Borouge 2, the major expansion of Borouge's production facilities in Abu Dhabi, which will triple its annual capacity to two million tonnes of polyolefin plastics, the statement added.

Borouge said its main reasons for locating the new facility in China were to take further advantage of the country's status as the world's fastest growing automotive market and its drive to become the biggest car producer in the world within the next 10 years.

“This investment represents a very significant step in the ability of Borouge and Borealis to serve its customers in the automotive industry with innovative plastics solutions and to take advantage of this rapidly growing market sector,” said Harald Hammer, Borouge’s chief executive.

“The location in Shanghai puts us close to the high growth markets in Asia, close to our supply channels and close to our customers.”

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