Abu Duabi – Mubasher: A consortium of Borouge, Abu Dhabi National Oil Company (ADNOC), and Borealis has signed a collaboration agreement with China’s Wanhua Chemical and its subsidiary Wanrong New Materials (Fujian) a speciality polyolefins complex in China.
The proposed complex, located in Fuzhou, Fujian Province, is set to produce 1.60 million tonnes per annum (MTPA) of specialty polyolefins, according to a press release.
It will leverage Borealis’ proprietary Borstar technology and Borouge’s extensive sales network.
The consortium plans to establish a Sino-foreign joint venture (JV) with Wanrong New Materials (Fujian), with each party holding a 50% stake, pending customary regulatory approvals.
This strategic initiative aims to reinforce Borouge’s premium positioning in the fast-growing market for high-quality differentiated materials and represents a significant step in its international growth ambitions.
The complex will benefit from Borouge and Borealis’ industry expertise, commercial acumen, and technology synergies, along with Wanhua Chemical’s robust market presence in China.
Additionally, the project will leverage China’s competitive construction and energy costs and accelerated execution timelines.
The partners are committed to achieving net-zero emissions and promoting the circular economy, intending to power the complex with 100% zero-carbon electricity, supported by the local government.
The final structure of the project and financial commitments will be determined following the feasibility study, which will also explore artificial intelligence (AI) solutions to support automated plant operations.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “This strategic growth initiative builds on the robust economic ties between the UAE and China, and offers the potential to create value for Borouge shareholders by accelerating our expansion in China.”
“The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks,” Al Suwaidi added.
Asia is a hub for polyolefin demand, with China accounting for 40% of global consumption. Borouge has a strong presence in China, operating an application center and a compounding center in Shanghai.
In 2023, nearly 30% of Borouge’s revenue came from China, underscoring the company’s commitment to strong growth in the country. Borouge supplies premium materials across various segments, including infrastructure, renewable energy, electric vehicles, and advanced packaging.
It is worth noting that Borouge's net profit soared to $272.70 million in the first quarter (Q1) of 2024 from $199.28 million in Q1-23.
