Borouge Plc, a prominent petrochemicals company known for its innovative polyolefins solutions, has announced an expansion of its growth strategies in the key Asia market. This initiative involves a strategic consortium aimed at developing a speciality polyolefins complex in China.

Source: Zawya

The consortium, which includes Borouge, ADNOC, and Borealis, has entered into a Project Collaboration Agreement (PCA) with China's Wanhua Chemical and its subsidiary, Wanrong New Materials (Fujian).

The proposed complex in Fuzhou, Fujian Province, plans to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins by utilizing Borealis' advanced Borstar® technology and leveraging Borouge's extensive sales network. The consortium aims to establish a joint venture with Wanrong New Materials (Fujian) on a 50:50 shareholding basis, pending standard regulatory approvals.

His Excellency Dr. Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of Borouge, observed the signing ceremony in Beijing alongside Liao Zengtai, Chairman of the Board of Wanhua Chemical, and Fuzhou Mayor, Wu Xiande. Hazeem Sultan Al Suwaidi, CEO of Borouge PLC, represented Borouge in the ceremonial signing as part of the consortium, while Kou Guangwu, CEO of Wanhua Chemical Group, represented Wanhua Chemical.

This strategic move will enhance Borouge's premium standing in the rapidly expanding market for high-quality specialized materials and is a significant step towards its international growth goals. Being part of the consortium, Borouge aims to strengthen its presence in China, the world's largest and fastest-growing polyolefins market, where petrochemical sustainability is a priority.

The project will capitalize on Borouge and Borealis' industry expertise, as well as technology, supply-chain, and logistics synergies within the ADNOC Group. It will also benefit from Wanhua Chemical's established reputation and network in the Chinese market, along with China's competitive construction and energy costs, and speedy execution schedules. The partners are dedicated to achieving net zero emissions, developing products that support the circular economy, and plan to power the specialty polyolefins complex with 100% zero-carbon electricity, backed by the local government.

The project's final structure and financial commitments will be determined after the feasibility study, which will also explore AI solutions to back automated plant operations.

Asia is a key hub for polyolefin demand, with China representing 40% of global consumption. Borouge has a strong presence in China, with operational centers in Shanghai, and in 2023, almost 30% of Borouge's revenue came from China, showing the company's commitment to driving growth in the country. Borouge supplies high-quality materials to various customer segments, including infrastructure, renewable energy, electric vehicles, and advanced packaging.