Borouge, an Emirati company, announced on Tuesday that it has accelerated the implementation of its growth plans in major Asian markets by joining a strategic alliance that seeks to establish and operate a specialized polyolefin production complex in China.
The alliance, which includes Borouge, ADNOC and Borealis, signed a cooperation agreement with the Chinese Wanhua Chemical Industries Company and its subsidiary Wanrong New Materials (Fujian), under which Borouge, a leader in polyolefin solutions, will begin conducting a study. Joint feasibility of the new complex project.
The joint feasibility study aims to establish a complex in Fuzhou, Fujian Province, to produce 1.6 million tons per year of specialized polyolefin. The complex will be powered by Borealis’ Borstar® technology and will benefit from Borouge’s extensive sales network.
The partners (the alliance and Wanrong New Materials (Fujian)) intend to establish this joint project equally, with 50 percent for the alliance and 50 percent for Wanrong New Materials, after obtaining approvals from the relevant regulatory authorities.
This strategic step will contribute to consolidating Borouge's presence in the Asian market, which is witnessing rapid growth in demand for distinctive, diverse, high-quality materials. It is also considered another achievement in the company's endeavors to achieve its ambitions for international growth.
As part of the alliance, Borouge is focusing on leveraging its position to strengthen its presence in China, the largest and fastest growing polyolefin market in the world, where achieving self-sufficiency in petrochemicals is one of its most important priorities, as well as strengthening the company’s strong position in the market.
The partners are committed to achieving net zero emissions and will work to develop products that support the circular economy. The partners also intend to operate the planned specialized complex for polyolefin production with 100 percent carbon-free electricity with support from the local government.
The final project structure and financial commitments will be formulated after the completion of the detailed feasibility study, which will also reveal initiatives to employ artificial intelligence solutions and tools to enable the automation of the complex’s operations.
It is noteworthy that Asia is considered a major driver of demand for polyolefin, as China's share is about 40 percent of the total global consumption of polyolefin.
Borouge already has a strong presence in China, operating an application center and polyolefin composite production unit in Shanghai. In 2023, Borouge received approximately 30 percent of its revenues from China.
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