SUPPORTS BOROUGE GROWTH STRATEGY THROUGH INCREASED OPERATIONAL EFFICIENCIES AND LOWER COSTS
Located in Khalifa Port, the new logistics warehouse is the largest in the Middle East and enables exports of Borouge ‘Made in the UAE’ solutions
The facility is owned and managed by ADNOC L&S, reinforcing its position as the region’s largest shipping and integrated logistics provider
Abu Dhabi, United Arab Emirates - 2 November 2022: Borouge Plc (“Borouge” or “the Company”) (ADX symbol: BOROUGE / ISIN: AEE01072B225), a leading petrochemical company that provides innovative and differentiated polyolefin solutions, and ADNOC Logistics and Services (ADNOC L&S), the region’s largest shipping and integrated logistics company, have announced the inauguration of Borouge Global Gateway at Khalifa Port. The facility will be owned and managed by ADNOC L&S to facilitate the export of Borouge’s ‘Made In UAE’ polymer solutions to international markets.
At the heart of the operations is a mega warehouse, the largest in the Middle East. The warehouse will play a critical role in enabling Borouge to improve operational efficiencies, by centralising and integrating its logistical operations. The warehouse is part of Borouge and ADNOC L&S’ 25-year agreement covering transportation and handling operations for Borouge’s products at Khalifa Port for export.
Hazeem Sultan Al Suwaidi, Chief Executive Officer, Borouge, commented: “Borouge continues to establish long-term strategic partnerships that reinforce our position as a leading provider of innovative and differentiated polyolefin solutions. The inauguration of the Borouge Global Gateway is a key milestone in our growth, as we enhance our global supply chains and further capitalise on the growing demand for our innovative solutions. These world-class facilities will further optimise our operational efficiencies and cost competitiveness.”
The new warehouse, the size of more than 40 football pitches, enables Borouge to store 180,000 tonnes of polyolefins every day, with 2.5 million tonnes per year throughput.
Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said: “ADNOC L&S provides a range of integrated services for our customers, strengthening our position as ADNOC Group’s logistics platform and delivering more efficiencies. ADNOC L&S with the support of Borouge, has established a strong track record of delivery across all contracted services, and we have made significant investments in developing the Borouge Global Gateway, that will cover all of Borouge’s logistics requirements, from production site and feeder vessel services to main port logistics.”
Borouge has expanded its production capacity in response to global demand for differentiated and more sustainable polyolefin solutions, which serve sectors including infrastructure, energy, agriculture, healthcare, mobility and advanced packaging. In 2021, Borouge’s majority shareholders announced they would expand the manufacturing complex, to become one of the world’s largest integrated polyolefin complexes by 2025 and boost its production capacity by fourteenfold. In the first quarter of 2022, Borouge successfully started up its fifth polypropylene unit in Al Ruways Industrial City, raising its polypropylene production capacity by more than 25%.
ADNOC L&S is in the midst of a strategic expansion programme, to offer a broader service to its customers while supporting and enabling the growth of ADNOC’s upstream production capacity and the expansion of its downstream and petrochemical operations.
About Borouge Plc
Borouge Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol “BOROUGE” / ISIN “AEE01072B225”), is a leading petrochemical company that provides innovative and differentiated polyolefin solutions for the energy, infrastructure, mobility, advanced packaging, healthcare and agriculture industries. ADNOC owns a majority 54% stake and Borealis holds a 36% stake in Borouge.
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About ADNOC L&S
As the maritime logistics arm of ADNOC Group, ADNOC L&S supports the entire oil and gas supply chain in the UAE through three major business segments: shipping, integrated logistics and marine services. It provides safe, reliable and cost-efficient maritime and logistics solutions to ADNOC Group companies and more than 100 global customers in over 50 countries.
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