13 Jun 2007
Borouge awards US$300 million Olefins Conversion Unit contract for Borouge 2 expansion project
Borouge, a leading provider of innovative, value creating plastics solutions, today awarded a contract worth approximately US$300 million for the construction of a new olefins conversion unit (OCU) to Samsung Engineering for Borouge 2, the major expansion project at the company’s production facilities in Ruwais, Abu Dhabi in the United Arab Emirates.
The unit, which will convert ethylene into propylene to feed two new Borstar® technology polypropylene plants, will be the world’s largest using ABB Lummus licensed technology. Total annual output from the OCU will be 752 kilotonnes of propylene plus 39 kilotonnes of butane-1 – totalling 791 kilotonnes. Work on the OCU will begin on June 25, 2007 and is scheduled to be completed by mid-2010.
Harri Bucht, Chief Executive Officer of the Borouge production company, commented: "The signing of this contract, along with the other Borouge 2 packages, is testament to the momentum of the Borouge 2 project. This expansion is not only a cornerstone of Borouge’s continued growth as a company it is a milestone in the growth of the plastics industry in the Middle East. With the technology of this olefin conversion unit Borouge is leading the way in producing propylene monomer to meet the rising demand for Borstar high performance polypropylene in key markets."
Borouge 2 will triple Borouge’s annual production capacity to two million tonnes of polyolefins and deliver a step change in Borouge’s capacity to meet demand in new geographic and industry markets. With increased reach, Borouge will be even better placed to help customers across the Middle East and Asia-Pacific to develop business opportunities in high performance applications.
In February 2007 Borouge signed a US$1.3 billion contract with Linde Engineering/CCC for the construction of a new ethylene cracker, and earlier this month signed a contract worth approximately US$1.8 billion with Tecnimont S.p.A. of Italy for the construction of three new Borstar polyolefins units (along with associated material handling facilities, laboratory facilities and marine works) and a contract for an estimated value of US$1.2 billion with Tecnicas Reunidas S.A. of Spain to construct the offsite and utility facilities for the expanded plant.
Reader enquiries
Borouge Pte Ltd
1 George Street
#18-01
Singapore 049145
Singapore
Notes for editors
About 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'™.
About Borstar®
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.
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
For more information about Samsung Engineering, visit www.samsungengineering.co.kr
Editorial enquiries
Marnie Woodd
Borouge Pte Ltd
marnie.woodd@borealisgroup.com
Yin Ching Yeap
APCO Industria Singapore
Bassam Fakih
APCO Industria UAE
袁吉英 - Jane Yuan
EMG China