On July 23rd, Borouge Corporation announced that it is targeting the construction of an integrated specialty polyolefin facility in China through a strategic co-investment model to facilitate its growth in its core Asian markets. An investment consortium comprised of Borouge, Abu Dhabi National Oil Company (ADNOC) and BOREALIS has signed a project cooperation agreement with China’s Wanhua Chemical and its holding company, Wanrong New Materials (Fujian) Co.
The proposed integrated facility in Fuzhou City, Fujian Province, is planned to produce 1.6 million tons of specialty polyolefins per year and will take advantage of Nordic Chemical’s advanced Borstar® know-how and Borealis’ extensive sales network. The investment consortium intends to establish a 50:50 joint venture with Wanrong New Materials (Fujian) Co., Ltd. in compliance with relevant laws and regulations and subject to customary regulatory approvals.
H.E. Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the UAE, Executive Director and Group Chief Executive Officer of Abu Dhabi National Oil Company (ADNOC), and Chairman of the Board of Directors of Borouge, together with Mr. Zengtai Liao, Chairman of Wanhua Chemical Group, and Mayor of Fuzhou City, Mr. Wu Xiande, witnessed the formal signing of the agreement. Hazem Sultan Al Suwaidi, Chief Executive Officer of Boru Corporation, and Kou Guangwu, President of Wanhua Chemical Group, attended the signing ceremony on behalf of Boru (one of the members of the investment consortium) and Wanhua Chemical respectively.
H.E. Dr. Sultan Ahmed Jaber (middle), Mayor Wu Xiande (back left) and Mr. Liao Zengtai (back right) witnessed the signing of the agreement. Mr. Hazem Sultan Al Suwaidi (front left) and Mr. Kou Guangwu (front right) at the signing ceremony
Hazem Sultan Al Suwaidi, CEO of Borouge, said, “This strategic development initiative builds on the strong Arab-Chinese economic ties and creates potential value for Borouge’s shareholders by accelerating the pace of our expansion in China. The proposed facility will leverage the expertise of our partner companies and major shareholders, combining significant capital, world-leading technology, innovation and technical expertise, and an extensive logistics and customer network. We look forward to working with our partners to quickly deliver a set of sustainability feasibility studies that will help us meet our commitment to reduce emissions.”
This strategic move will strengthen Bolu’s key commercial position in providing high-quality, differentiated materials in a fast-growing market and is significant to its international growth vision. As a member of the consortium, Borouge is aiming to strengthen its presence in China, the world’s largest and fastest growing market for polyolefins, where petrochemical self-sufficiency is becoming a priority, further expanding the company’s strong market position.
The project will capitalize on the industry and commercial expertise and technology of Borouge and BOREALIS, as well as the supply chain and logistics synergies of Abu Dhabi National Oil Company (ADNOC). The project will also benefit from Wanhua Chemical’s strong track record and network in the Chinese market, China’s competitive construction and energy costs, and an accelerated execution schedule. The partner companies have set their net-zero emission targets and are committed to developing products to drive the circular economy. Supported by the local government, the partners plan to use 100% zero-carbon electricity to power the proposed specialty polyolefin integration facility.
The final structure and financial commitment for the project will be established after the feasibility study is completed, and artificial intelligence solutions will be included in the exploration to support the plant’s automated mode of operation.
Asia is the epicenter of polyolefin demand, with China accounting for 40% of global polyolefin consumption. Borouge has been deeply involved in China for many years, operating an application center and a modification plant in Shanghai. Given that approximately 30% of Borouge’s 2023 revenues will come from the Chinese market, the company will continue to grow strongly in the region. Borouge serves a broad customer base with high-end materials for infrastructure, renewable energy, new energy vehicles and advanced packaging applications.
