World’s largest plastics project will triple production capacity at Abu Dhabi petrochemicals facility
Borouge, the leading provider of innovative plastics solutions and one of the UAE’s leading international companies, has announced that the multi-billion Borouge 2 expansion project at its petrochemicals manufacturing facility in Ruwais, Abu Dhabi is making rapid progress and will be completed on schedule by mid-2010.
The announcement was made at a press conference held today (Monday, June 19, 2006) at Grand Hyatt Hotel, Dubai where Harri Bucht, Chief Executive Officer of Abu Dhabi Polymers Company (Borouge), Hubert Puchner, Chief Executive of Borouge Pte and Jamal Al Ramahi, Deputy Chief Executive of Borouge Pte outlined the company’s strategy for further expansion, its vision for ‘Shaping the Future with Plastics’ and explained the vital contribution of plastics to modern life.
Speaking at the conference, Bucht said: “Borouge 2 is a major step for Borouge as it represents a new phase not just for the company but also for Abu Dhabi. It is one of the world’s largest plastics projects and will triple production capacity at the Ruwais facility. The project will encourage the growth of downstream industries and increase our capacity to serve growing markets in the Middle East and Asia.”
The Borouge 2 project comprises an ethane cracker that will produce 1.4 million tonnes of ethylene per annum and the world’s biggest 752 kta olefins conversion unit. Its two Borstar enhanced polypropylene PP plants will have a combined annual capacity of 800 kilo tonnes while the Borstar enhanced PE plant will boast an annual capacity of 540 kilo tonnes.
Front End Engineering and Design (FEED) of the project’s utilities and off-sites is due for completion this summer while the polyolefins is scheduled for completion in late summer. The FEED of the Olefins Conversion Unit is set for completion in September this year.
“Progress on the new world scale project has been rapid. Evaluation of the bids for the cracker package has been undertaken and will be completed by October the project is expected to be delivered by mid-2010,” Bucht added.
“Demand for plastics is mirroring the growth of the economy, not just in terms of volume but also for the kind of differentiated, specialist materials that we create. We are committed to providing the materials that make a difference to modern life, towards fulfilling our vision for ‘Shaping the Future with Plastics,” pointed out Puchner.
In his presentation, Puchner outlined the areas where plastics make a positive contribution to areas of global concern, from the need to keep food fresh to the preservation of precious water resources; the search for, use and conservation of energy; advances in medicine and perennial challenges of global health; and the technology-driven spread of sophisticated global communication networks.
“What Borouge has achieved is testament to the ability of the UAE to compete on the world stage. We have built a multi-billion dollar business in the space of five years and are on the threshold of further expansion, new products and entry into new markets,” said Al Ramahi while highlighting the company’s success in establishing itself as a leading player in international markets across the Middle East and Asia Pacific regions.
Since the completion of its production site in Ruwais, Abu Dhabi in 2001, Borouge has become a leading supplier of value-adding specialist plastics materials for applications such as water, gas and industrial pipe systems, power and telecommunications cables, advanced packaging, medical devices and automotive components. This has brought the company an annual turnover of USD 860 million in 2005.
Established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, a pre-eminent European plastics provider, Borouge is a groundbreaking international partnership at the forefront of next-generation plastics innovation.
Borealis is majority owned by the International Petroleum Investment Company (IPIC) of Abu Dhabi and has more than 40 years experience in providing advanced polyolefin solutions for industries that use film, coating and thermoforming products. With foresight throughout the value chain and a focus on customer needs, Borealis continues to provide innovative, value-adding PP and polyethylene solutions for the film industry.