2014 will be pivotal for Borouge with the completion of the ramp up of all its Phase 3 units by year’s end, giving the global petrochemical player’s exports its biggest push ever.
The expansion will put greater volumes in world markets, particularly in emerging economies that are investing more in water and wastewater facilities and power generation projects for whom the company provides innovative solutions.
A joint venture between Abu Dhabi’s Adnoc and Austria-based Borealis, Borouge is currently increasing the annual production capacity of its petrochemical plants in Ruwais, Abu Dhabi from two million to 4.5 million tonnes and is on the brink of starting-up the plants. In addition to increasing the capacity of polypropylene (PP) and polyethylene (PE) production, Borouge 3 will introduce low density polyethylene (LDPE) into its production portfolio, enabling the company to provide advanced plastics solutions for the global wire and cable markets.
This development is one of the largest and most integrated polyolefin expansions in the history of the petrochemical industry and is positioning Borouge among the top producers in the Middle East.
Asia will continue to be the primary export target of Borouge, but the company also plans significant exports to Europe and is already sending shipments there and to Turkey to test the market and prepare for Borouge 3’s volumes.
“The present Borouge development enables our customers in the Middle East and Asia in particular to benefit from the great product performance and high productivity levels delivered by our super-clean XLPE compounds as well as the reactor-made Visico XLPE base resin. This will also allow our customers to be served regionally by our Ruwais-produced Borlink XLPE compounds,” says Roland Janssen, Borouge vice president, marketing centre for wire and cable. “Other integral aspects of the overall Borouge expansion include logistic hubs such as the new Ruwais Distribution Centre in Abu Dhabi and the establishment of innovation centres in both the UAE and China.”
“Borealis and Borouge continue to maintain global leadership in the wire and cable industry by investing in cutting-edge production facilities and in innovation in all areas of the world where we do business,” adds Gilles Rochas, Borealis vice president for energy and infrastructure.
Borouge’s new state-of-the-art Innovation Centre in Abu Dhabi is working together with the European innovation centres of Borealis to develop the competency of polymer science in the UAE. Meanwhile, Borouge’s Application Centre in Shanghai will be expanded and relocated to Pudong in late 2014.
Annual production capacity at Borouge’s Shanghai Compounding Plant is being increased from 50,000 tonnes to 90,000 tonnes mainly to serve the automotive market. Borouge is further expanding its commercial and supply chain networks throughout Asia and the Middle East to meet economic growth and better serve its regional customers. This includes the expansion of the Asia North regional sales office in Shanghai and adding two new warehouses in Ningbo and Tianjin in China in 2014. Following the opening of the newest representative office in Japan, Borouge is also locating itself in Bangkok, Ho Chi Minh City, Jakarta and Delhi in 2014.
“The region, especially China, is undergoing a significant shift in economic strategy to achieve a more sustainable development, and we can see more opportunities there such as in the urbanisation trend and growing green consciousness in the public,” said Vincent Ong, senior vice president of Asia North at Borouge. “With the increasing investments in production capacity, regional offices, an application centre and warehouses in China, we can efficiently enhance our competitive advantage and service offering in the local market.”
At the latest ChinaPlas, Borouge debuted its innovative polypropylene solutions including new grades of BorECO for pipes, cross-linked polyethylene cable insulation for High Voltage Direct Current (HVDC) cables, Daplen and Fibremod for automotive components production, BorPure for the plastic caps and closures market, and the sustainable greenhouse films solution - Borstar.
BorPure MB5568 and MB5569 are designed mainly for caps and closures for carbonated soft drinks, juices, tea and bottled water. Built on the unique Borstar multimodal polyethylene (PE) technology platform, BorPure MB5568 and MB5569 will enable the beverage industry to fulfil their ambition of going even lighter and quicker.
“With BorPure MB5568 and MB5569, converters and brand owners can produce lighter closures and be cost competitive,” added James Ong, Borouge’s marketing manager of marketing centre, moulding. “In doing so, they also reduce the carbon footprint of their products and consequently contribute to environmental sustainability.”
“We stay on course in our mission of ‘Value Creation through Innovation’ in plastics providing us with enormous market potential to address crucial global challenges the world is facing due to rapid population growth, urbanisation and other mega-trends impacting modern society,” said Wim Roels, CEO of Borouge’s Marketing & Sales Company. “We intend to bring our worldwide technical and scientific expertise in closer cooperation with local industry, societal, and scientific networks.”
He added: “Together with the most innovative plastic convertors and end-users, we are well prepared to meet Asia market’s booming demands and the specific needs of the market.”
At the 16th Wetex, the Water, Energy, Technology and Environment Exhibition in Dubai, Borouge highlighted its wide range of polyolefin solutions for sustainable infrastructure applications including reliable pipeline systems and durable wires and cables.
INDIA, OTHER MARKETS
India is one of the largest markets for Borouge. Speaking at the Indian Plastivision Expo last December, Roels said: “In line with our global expansion we will also continue to significantly grow in India and we will be well positioned to meet the growing market demand in India as well as our customers’ specific current and future needs to be leading in their fields.”
“The fast growing Indian market is very important for our growth strategy”, says Tarmo Raudsepp, senior vice president for Asia South at Borouge. “Since the early days of Borouge we established a professional local team in Mumbai to deliver innovative and sustainable solutions to our customers. With the opening of our office in Delhi, we will reinforce our commitment to the Indian market and will be also close to our customers in Northern India.”
The Indian polyolefins market is expected to surge from 5.8 million in 2013 to 9.9 million by 2020. It is the second biggest polymer market in Asia after China and the third biggest one globally.
Roels has said that while Europe was rebuilding after a difficult economic phase, some segments such as consumer packaging are still growing and Borouge’s exports to Europe through Borealis are going strong. In other comments, he said he expected business with Africa to grow.