05.07.2010

www.plasticker.de

Borealis: Borouge signs major contracts valued at US$ 2.6 billion to advance its strategic expansion

Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC), one of the world´s major oil companies, and Borealis, a leading provider of chemical and innovative plastics solutions, formally signed three major Engineering, Procurement and Construction (EPC) contracts valued at approximately US$ 2.6 billion for its Borouge 3 strategic expansion in Ruwais, Abu Dhabi, in the UAE.

The first contract worth US$ 1,255 billion for the construction of two Borstar® enhanced polyethylene and two Borstar® enhanced polypropylene units, as well as the second contract worth US$ 400 million for the construction of a 350,000 tonnes per year (t/y) low density polyethylene (LDPE) unit, were signed with the Joint Venture consortium Maire Tecnimont of Italy and Samsung Engineering of South Korea, on a lump sum turnkey basis. The annual capacity of the new polyethylene units is 1,080,000 t/y and the new polypropylene units is 960,000 t/y.

A third contract worth US$ 935 million for the utilities and off-site facilities for the expanded plant were signed with Hyundai Engineering and Construction of South Korea.

"Signing these contracts represents an important milestone in the fulfilment of Borouge's growth strategy in the Middle East and Asia. In addition to the pipe, automotive and advanced packaging markets that we serve today, our investment in low-density polyethylene production will spearhead our ability to manufacture innovative solutions for the global wire and cable market." said Abdulaziz Alhajri, CEO of Abu Dhabi Polymers Company (Borouge) at the signing.

Borouge has previously awarded a US$1.075 billion contract to Linde Engineering for the construction of the Borouge 3 ethane cracker, while Al Asab General Transportations and Contracting Establishment of Abu Dhabi are executing the Borouge 3 site preparation.

These significant investments will quadruple Borouge's production capacity to over 4.5 million tonnes per year by 2013, making it the largest integrated polyolefins site in the world.

More Information: www.borealisgroup.com, www.borouge.com