Abu Dhabi-based Borouge will develop a speciality polyolefins complex in China after signing a Project Collaboration Agreement with Wanhua Chemical and its subsidiary Wanrong New Materials (Fujian).
This is part of the company’s growth plans in its core Asia market. China also happens to be the biggest market for Borouge, accounting for 30 percent of its revenue, and 40 percent of global polyolefin consumption.
The proposed complex will be built in Fuzhou in Fujian Province and produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins. It will be able to leverage both Borealis’ proprietary Borstar technology and Borouge’s extensive sales network.
The consortium, comprising Borouge, ADNOC and Borealis, intends to establish a Sino-foreign joint venture with Wanrong New Materials (Fujian), with a shareholding ratio of 50:50 respectively, subject to regulatory approvals.
Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC and Chairman of Borouge, witnessed the signing ceremony in Beijing, along with Liao Zengtai, Chairman of Board of Wanhua Chemical.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, who signed the agreement for his company, commented: “This strategic growth initiative builds on the robust economic ties between the UAE and China, and offers the potential to create value for Borouge shareholders by accelerating our expansion in China.
“The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks.”
The final structure of the project and financial commitments will be established following the completion of the feasibility study.
The initiative promises to reinforce Borouge’s premium positioning in the fast-growing market for high-quality differentiated materials and represents a significant step in its international growth ambitions. Borouge is aiming to enhance its presence in China, the world’s single largest and fastest-growing polyolefins market.
The proposed project will leverage Borouge and Borealis’ industry and commercial expertise, as well as technology, supply chain and logistics synergies across the ADNOC Group. It will also benefit from Wanhua Chemical’s strong track record and network in the Chinese market, along with China’s competitive construction and energy costs.
The partners are committed to achieving net zero emissions and developing products that promote the circular economy and intend to power the planned speciality polyolefins complex with 100 percent zero-carbon electricity. It will also explore artificial intelligence (AI) solutions to support automated plant operations.
Borouge has established a strong presence in China, operating an application centre and a compounding centre in Shanghai.
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