Borouge, a leading provider of sustainable, innovative and value-creating plastics solutions, has established a new Asia Regional Warehouse in Singapore to support its global growth strategy and meet the rising demand in Southeast Asia.
Borouge produces 2 million tonnes of polyolefins per year at its petrochemical plants in Abu Dhabi, United Arab Emirates, and is currently expanding its industrial complex to increase its total production capacity to 4.5 million tonnes per year (t/y). Together with its parent company Borealis, Borouge will reach a combined capacity of approximately 8 million tonnes of polyolefins per year, making the Company one of the top-ten players in its field worldwide.
“Our new Asia Regional Warehouse is designed to cater for the massive volume increase coming on stream from the new Borouge 3 plants and to provide the best-in-class service for our customers in Southeast Asia,” said Abdulaziz Alhajri, CEO Abu Dhabi Polymers Company (Borouge). “It is a further important milestone on our global growth journey.”
From 2010 to 2014, Borouge has gone through an unmatched 700% capacity expansion and has invested more than USD 10 billion towards the growth of the Company. Alongside the facility expansion, Borouge has expanded its logistics and commercial networks across the Middle East and Asia as well as its research capabilities.
Borouge awarded Katoen Natie to provide logistic services for its Asia Regional Warehouse which commenced operation on 15 September 2014.
The warehouse has a maximum total storage capacity of 120kt providing for both, fixed and variable capacity. It operates in addition to the existing Southeast Asia Logistics Hub which has a total storage capacity of 44kt and repacking facilities.
“We are very much looking forward to the cooperation with Katoen Natie,” said Wim Roels, CEO Borouge PTE. “I am convinced that Katoen Natie, which has been awarded “Company of the Year 2014” in its Belgian home market, is the right partner to support Borouge in its mission to deliver competitive edge services to our customers.”
It is clear that Singapore delivers a powerful and unique preposition for the new warehouse. Its excellent strategic location, best-in-class service at Jurong Island as an integrated chemical hub, efficient port authorities and overall favourable business conditions make Singapore very valuable for driving Borouge’s business growth from there.
Established in 1998, Borouge’s Marketing & Sales Company is headquartered in Singapore. Since the inception, the headcount in Singapore grew from 9 to over 200 employees at present. During the past two years, 85 new employees were hired.
The Asia Regional Warehouse also underlines Borouge’s commitment to Southeast Asia. Due to the rapidly growing population, increased urbanisation and a rising middle class, Southeast Asia continues to experience impressive growth with the polyolefin market expected to surge from 8.6 million t/y in 2010 to 14.2 million t/y by 2020.
“With the Asia Regional Warehouse up running we are more flexible and we can respond quicker to the changing customers’ requests,” concluded Tarmo Raudsepp, Senior Vice President Asia South, Borouge. “We aim to be close to our customers across Southeast Asia and to understand their individual needs and requirements. This is more important due to the complexity and diversity of the region.”
The signing ceremony of awarding contract to Katoen Natie on 27 November at the Shangri-La in Singapore was witnessed by HRH Princess Astrid of Belgium, Representative of His Majesty the King of Belgium.
Princess Astrid was accompanied by high ranking Belgian minsters including HE Didier Reynders, Federal Deputy Prime Minister and Minister of Foreign Affairs and European Affairs, HE Peter De Crem, Federal Secretary of State for Foreign Trade, HE Geert Bourgeois, Minister President of the Government of Flanders, and Flemish Minister for Foreign Policy and Immovable Heritage.
The contract signed by Abdulaziz Alhajri, CEO Abu Dhabi Polymers Company (Borouge), and Fabian Leroy, Vice President Katoen Natie, in the presence of Rashed Saud Al Shamsi, Petrochemicals Director – ADNOC and Chairman Borouge PTE, and Herbert Willerth, Deputy Chief Executive Officer, Borealis.