30 Jun 2005
Change in Borealis ownership structure underpins future growth
Borealis continues to deliver results as a leading, innovative plastics solutions provider
The International Petroleum Investment Company (IPIC) of Abu Dhabi and OMV Aktiengesellschaft of Austria have announced today their agreement to purchase Statoil’s 50% shareholding in Borealis A/S. As a result, the new Borealis ownership will be 65% IPIC and 35% OMV. Statoil will continue as a major long-term feedstock supplier to Borealis. Dr. Gerhard Roiss, Deputy CEO of OMV, will be the Chairman of Borealis A/S. Closing of the transaction is expected during the fourth quarter once regulatory approvals are received.
Commenting on the new ownership structure, Borealis’ Chief Executive John Taylor said, “Borealis has successfully completed a major transformation of the company over the past four years. We continue to be committed to being a leading, innovative provider of plastics solutions to our customers”. He added, “I am enthusiastic about this change in ownership as I believe it will provide the opportunity to further strengthen the company in its implementation of our value creation strategy launched in 2001.”
IPIC’s Managing Director, Mohamed Al Khaily, stated that, “IPIC’s increased ownership in Borealis will further deepen the ties between Borealis and Borouge providing an even stronger foundation for continued growth in the Middle East and Asia. He added, “Our increased investment in the company is testament to the rewarding partnership we enjoy with Borealis and OMV. We are very pleased with Borouge’s developments over the last three and a half years, especially with the potential of the Borstar® PE technology benefits to penetrate key differentiated growth market areas such as pipe and enhanced film applications.”
From OMV, Dr. Gerhard Roiss said, “This change in ownership will enable Borealis to further develop integrated investment opportunities with its owners as well as exploring additional routes to achieve profitable growth”. He emphasized, “I am particularly keen to reinforce Borealis’ Research and Development capabilities as an integral part of their strategy to create and deliver value to their customers.”
Statoil Chief Executive Helge Lund explained, “We are selling our interests in petrochemicals because this no longer forms part of our core business. The sale to IPIC and OMV also represents a good industrial solution for Borealis. As a responsible owner, Statoil has participated in developing Borealis industrially and financially to reach the strong position it occupies today.”
John Taylor concluded, “I eagerly look forward to the continuing development of Borealis as an independent company under our new ownership structure. I would like to thank all our customers, suppliers and employees for their active involvement and support in our past successes. Together we will continue to actively pursue our vision of Shaping the Future with Plastics.”
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Borealis
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Notes for editors
Company Backgrounders:
A leading, innovative provider of plastics solutions
Borealis is a leading, innovative provider of plastics solutions. Its technology shapes daily life products and forms the basis of next generation innovation and creative development in plastics. There is a commitment to the vision of ‘Shaping the Future with Plastics’ since Borealis’ technology and products are playing an increasingly important role and are necessary for the development of modern society and tomorrow’s world.
In 2004, the company had a net income of EUR 203 million. With EUR 5 billion revenue in sales and 4,500 employees, Borealis has more than 40 years of experience as a reliable supplier of polyethylene (PE) and polypropylene (PP) products. Borealis is a partner to its customers manufacturing and developing products such as food packaging, diapers, appliances, automotive parts, distribution pipes for water, gas and sewage, power cables, sporting equipment and medical devices.
Borstar is a registered trademark of Borealis A/S.
About Borouge
Borouge brings the best of European technology to one of the Middle East’s most modern plants and is an expanding force in the polyolefins industry. It was established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis A/S, one of Europe’s largest polyolefin producers. Today, Borouge produces Borstar® bimodal enhanced polyethylene at its US$1.2 billion petrochemical complex in Ruwais, Abu Dhabi in the United Arab Emirates. In addition to promoting its own polyethylene products, Borouge also oversees the distribution and marketing of Borealis’ speciality polyolefins in the Middle East and Asia Pacific. For more information, please visit www.borouge.com.
OMV Aktiengesellschaft
With Group sales of EUR 9.88 billion and a workforce of 6,475 employees in 2004, as well as market capitalization of over EUR 10 billion, OMV Aktiengesellschaft is Austria’s largest listed industrial company. As the leading oil and gas group in Central Europe, OMV is active in Refining and Marketing (R&M) in 13 countries and has set the goal to increase its market share to 20% by 2008. In Exploration and Production (E&P) OMV is active in 18 countries on five continents. In the Gas business segment OMV has storage facilities and a 2,000 km long pipeline system, transporting 43 bcm of natural gas annually to countries such as Germany and Italy. OMV owns integrated chemical and petrochemical plants, and has a 35% stake in Borealis A/S, one of the world’s leading producers of polyolefin. Other important holdings are: 51% of Petrom SA, 50% of EconGas GmbH, 45% of the BAYERNOIL refining network and 10% of the Hungarian company MOL.
IPIC
The International Petroleum Investment Company (IPIC) is the Abu Dhabi state enterprise responsible for all foreign investments in the oil and chemicals sector. It is supervised by the Supreme Petroleum Council of Abu Dhabi which oversees the Emirates' oil and gas operations as well as related industries. It is an internationally active, strategic investment company from Abu Dhabi which holds a 17.6% stake in OMV Aktiengesellschaft.
Statoil
Statoil is the world’s second largest seller of crude oil and operates the world’s largest offshore gas field, the Troll Field. Partly owned by the Norwegian state and partly privatised, the Statoil Group has activities in 25 countries and employs approximately 17,000 people.
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Related images
Left to Right. Standing: David Davies (OMV), John Taylor (Chief Executive Officer, Borealis), Mohammed Al-Azdi (ADNOC), Finn Kulås (Statoil). Sitting: Dr. Gerhard Roiss (Deputy Chief Executive Officer, OMV), Mohamed Al Khaily (Managing Director, IPIC), Erling Øverland (Statoil).
