A consortium comprising UAE’s Borouge Plc, ADNOC, and Austria’s Borealis has initiated a joint feasibility study for a proposed greenfield speciality polyolefins complex in China.
The consortium has signed a project collaboration agreement with China’s Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical, according to a statement published on the Abu Dhabi Securities Exchange by Borouge.
The proposed complex, to be located in Fuzhou, Fujian Province, is projected to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins. The consortium plans to establish an equally owned Sino-foreign joint venture with Wanrong New Materials (Fujian), pending customary regulatory approvals.
The final structure of the project and financial commitments will be determined following the completion of the feasibility study, which will also explore the use of artificial intelligence (AI) solutions to support automated plant operations.
The planned speciality polyolefins complex will be powered by 100% zero-carbon electricity. Asia is a hub for polyolefin demand, with China accounting for 40% of global consumption. Nearly 30% of Borouge’s revenue comes from China.
Earlier this year reports said Borouge’s $6.2 billion Borouge 4 project in Ruwais is “on track” for completion by the end of 2025. The new plant will boost Borouge’s polyolefin production by approximately 30 per cent, reaching a total of 6.4 million tonnes.
This expansion will make Borouge’s production operation at Al Ruwais Industrial City the world’s largest single-site polyolefin complex. Despite a 17 per cent annual rise in fourth-quarter net profit driven by lower costs and expenses, the company experienced a 6 per cent decline in quarterly revenue due to “weaker global demand.”
Asia, home to several large emerging economies, remains the centre of polyolefin consumption and production, with China leading in both polyethene and polypropylene manufacturing.
Borouge operates three offices in China, located in Beijing, Shanghai, and Guangzhou. Established in 1998, Borouge is a joint venture between Abu Dhabi state energy company ADNOC and Austrian chemicals producer Borealis. The company employs over 3,100 people and serves customers in more than 86 countries across Asia, the Middle East, and Africa.
In May 2022, Borouge raised $2 billion through an initial public offering (IPO) and was listed on the Abu Dhabi Securities Exchange. The IPO, which was about 42 times oversubscribed, marked the largest listing in Abu Dhabi at the time.
