6 Feb 2007

Borouge and Linde/Consolidated Constructors Company (CCC) formally sign US$1.3 billion cracker contract

Borouge, the leading provider of innovative plastics solutions, and a consortium of the Engineering division of The Linde Group and CCC today formally signed a contract worth approximately US$1.3 billion for the construction of a new Ethylene Cracker, which is considered the largest grass roots gas cracker in the world with a capacity of 1.5 million tonnes per annum.

The signing ceremony took place in the presence of senior dignitaries of the UAE government and the Chancellor of the Federal Republic of Germany, Angela Merkel on her visit to Abu Dhabi, UAE. The contract was signed by Harri Bucht CEO of Abu Dhabi Polymers (Borouge), Dr Aldo Belloni, Member of the Executive Board of Linde AG and Farid Asfour, Vice President, CCC, and marks the start of a new phase in an already successfully working relationship between Borouge, Linde and CCC.

The cracker is the first step in Borouge 2, the major expansion project being undertaken by Borouge at its production facility in Ruwais, Abu Dhabi, which will triple annual production capacity to two million tonnes of Polyolefins. The contract has been awarded to Linde Engineering in a consortium with CCC on a lump sum turn key basis, with preliminary work already under way and completion scheduled in 41 months’ time in 2010.

"Borouge is about to enter the most exciting phase of its evolution," commented Harri Bucht, Chief Executive Officer, Abu Dhabi Polymers Ltd (Borouge). "Borouge 2 is one of the world’s largest plastics projects and is a major step in the development of the Middle East petrochemicals industry."

"We are proud to be working closely with Borouge on what is a genuinely exciting project. Our continued partnership with Borouge will help bring to fruition one of the most forward looking projects in the region today," commented Dr Aldo Belloni of The Linde Group.

Borouge 2 is a key part of Borouge’s strategy for growth, maximising output and consolidating its position in markets throughout the Middle East, Asia-Pacific and Africa. As well as the ethylene cracker, the Borouge 2 project will comprise the world’s biggest olefins conversion unit, producing 752 kilotonnes per annum and two Borstar® polypropylene plants with a combined annual capacity of 800 kt, along with a new Borstar Enhanced PE plant that will have an annual capacity of 540 kt to compliment the existing 600 kt unit.

The commencement of new expansion coincides with the celebrations last month of five years of production at Borouge’s Ruwais site. Since construction of the first bimodal polyethylene unit in the Middle East was completed in December 2001, around 2.3 million tonnes of polyethylene have been produced by Borouge, providing innovative solutions for customers in a wide range of industry sectors.

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Notes for editors

Borouge and Borealis

Borouge and Borealis are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.

For more information on Borealis and Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company, visit www.borouge.com and www.borealisgroup.com.

Borstar technology is a critical element in developing the next generation of innovative, creative plastics. Borstar is Borealis’ proprietary technology that supports differentiated PE and PP products. It enables production of tailored plastic grades that reduce costs through efficient processability. Other benefits include short start-up times, quick transitions among grades and the capacity to produce a whole range of product mix in one cycle. Borouge’s cracker and Borstar PE units consistently achieve first-time-right products with minimal downtime. Now, Borstar PE 2G, Borealis’ next generation technology, represents a leap forward in polymer design – from bi-modal PE to multi-modal PE–facilitating the development of an ever-widening range of new plastics which outperform alternative materials in meeting the needs of manufacturers and end users. By enabling a tailored molecular structure of PE to precisely match the application requirements, Borstar PE 2G extends the product range with more sophisticated, customer-oriented solutions characterised by an outstanding combination of mechanical properties and excellent processability.

Borstar is a registered trademark of Borealis.

About The Linde Group

The Linde Group is a world leading industrial gases and engineering company with more than 53,000 employees working in around 70 countries worldwide. Following the acquisition of The BOC Group, the company has gases and engineering sales of approximately 12 billion Euro. The strategy of The Linde Group is geared towards earnings-based growth and focuses on the expansion of its international business with forward-looking products and services.

Related images

Borouge and the consortium of Linde/CCC at the official signing ceremony of the Borouge 2 cracker in Abu Dhabi, UAE, signed in the presence of the Federal Chancellor of Germany Angela Merkel and HE Sheikha Lubna Al Qasimi UAE Minister of Economy.

From right to left:
Mr Farid Asfour, CCC Vice President, Mr Michael Clos, German Federal Minister for Economics and Technology, HE Sheikha Lubna Al Qasimi UAE Minister of Economy, Federal Chancellor of Germany Angela Merkel, Mr Harri Bucht, CEO Abu Dhabi Polymers (Borouge), Dr Aldo Belloni Member of the Executive Board of Linde AG.

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