Borouge awards US$220 million contract to Agility for the Shanghai logistic hub services

Borouge, a leading provider of innovative, value creating plastics solutions, has awarded a service contract to Agility (Abu Dhabi) PJSC to build the Borouge Compound Manufacturing Unit (CMU) and Shanghai Logistics Hub in Shanghai, China, and to provide local logistics services for Borouge’s customers in Asia for a duration of 10 years with effect from its operational start up date in 2010.

Following the contract win, Agility will undertake the design, development and subsequent operation of the logistics hub, to ensure sufficient infrastructure, storage facilities, packaging and distribution services to accommodate Borouge’s products dispatched from Abu Dhabi in the United Arab Emirates (UAE). Agility will handle and distribute a total volume of approximately 600 kilotonnes of polyolefins out of the Shanghai logistics hub annually.

Borouge’s current production capacity in the UAE is 600 kilotonnes of Borstar® polyethylene per year. With the ongoing Borouge 2 project expansion, this capacity will increase to 2 million tonnes per year by the middle of 2010 and will add polypropylene to the product mix. Construction of the Borouge 2 facility has already started and consists of a 1.5 million tonne ethane cracker, the world’s largest olefins conversion unit (with a capacity of 750 kilotonnes), two Borstar® polypropylene plants with a total capacity of 800 kilotonnes and a 540 kilotonne Borstar® polyethylene plant.

Abdulaziz Alhajri, CEO of Abu Dhabi Polymers, the Borouge manufacturing company, explained: “The Shanghai logistics hub is one of several regional logistics hubs that will provide storage and logistics support for our operations close to our customers. It will enable us to provide a fast, flexible delivery service to our customers, for all of Borouge’s high value product lines. Agility comes to us with a strong reputation in the global logistics market for delivering cost-effective and robust solutions. Hence, we had no hesitation to select them as a partner in this endeavor.”

Harald Hammer, CEO of the Borouge marketing company added: “The Borouge CMU will be producing 50 kilotonnes annually of high quality compounds, manufactured from enhanced Borstar® polypropylene specifically for the rapidly growing Chinese automotive market. Along with the logistics hub, the CMU will bring us closer to our customers, helping them to add value to their business”.

Philip Browitt, President of the Agility Chemical Speciality business explained: “At Agility we provide truly integrated logistics solutions to a wide range of industries leveraging our vast global network and differentiated by our focus on personal service. For the Borouge Shanghai Logistics Hub & CMU, we combined our chemical knowledge and industry heritage with the expertise of Agility Abu Dhabi and Agility China to differentiate and win this project. We enjoy a proven track record in the global chemical logistics sector and are delighted to extend the highest level of our professional services to Borouge and its customers in the region.”

Houssam Mahmoud, CEO of Agility (Abu Dhabi) PJSC, pointed out that the contract win demonstrated Agility’s leadership in providing gateway handling facilities in China and South East Asia. “Agility differentiates through regional penetration and relationships, chemicals knowledge and investment strategy and the Borouge contract is the latest addition to the growing portfolio of Agility” he added.

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