Borouge to boost production to 4.5mn tonnes a year

EXPANSION PROJECT: Borouge said it plans to increase its production capacity to 4.5 million tonnes per year.

Plastics manufacturer Abu Dhabi Polymers Company (Borouge) plans to increase its production capacity to 4.5 million tonnes per year by 2014 through the expansion of its Abu Dhabi petrochemical complex, the company said on Monday.

Borouge said the expansion project, called Borouge 3, would add an additional 2.5 million tonnes of polyolefins - among the most widely used plastics today - to its annual production capacity.

The company said it had begun a feasibility study into Borouge 3, which would look at ways to increase its competitiveness in pipe, automotive and advanced packaging applications.

Borouge 3 will include a low density polyethlene (LDPE) unit to produce material for wire and cable applications, the company said.

Harald Hammer, chief executive of Borouge Marketing Company, said the expansion "will enable us to consolidate our leadership of the wire and cable markets in Asia and the Middle East".

Borouge also said construction of Borouge 2, another expansion project currently underway, was on target to be completed in 2010.

Borouge 2 will increase the company's production capacity from 600,00 tonnes per year currently to two million tonnes.

Borouge is a joint venture between the Abu Dhabi National Oil Company (Adnoc) and Austrian-based plastics company Borealis.

Borouge said last year 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.

The new facility will be constructed in Shanghai and have an annual capacity of up to 50,000 tonnes, it said.

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