Borealis and Borouge invest for future growth

• Investments to meet growing demand in the infrastructure, automotive and advanced packaging markets in Europe, the Middle East and Asia

• Supports ‘Value Creation through Innovation’ strategy

• Ensures cost competitiveness from feedstocks to customers

Borealis and Borouge, leading providers of innovative, value creating plastics solutions, continue to invest in Europe, the Middle East and Asia to secure growth in the infrastructure, automotive and advance packaging markets.

Borealis’ current European production asset investments are aimed at increasing the competitiveness of its operations. In Sweden, the EUR 370 million investment in a 350,000 t/y low density polyethylene (LDPE) plant, planned for completion at the end of 2009, will supply advanced materials to the growing wire and cable market as well as the Nordic packaging market. A EUR 200 million expansion in Germany of a polypropylene (PP) plant based on unique Borstar technology will enhance Borealis’ ability to provide innovative solutions to the progressing advanced packaging market. EUR 155 million is being invested in Finland to expand the cracker, PP plant and phenol business to meet the increasing demand for innovative solutions in the pipe and advanced packaging markets as well as the developing Russian market. The phenol expansion is an integral part of Borealis’ Base Chemicals business, which includes acetone as well as melamine and plant nutrients produced by Agrolinz Melamine International (AMI).

In an ongoing effort to achieve a step change in innovation, Borealis is bolstering the research and development activities at its innovation centres in Austria, Finland and Sweden. In addition, EUR 30 million is currently being invested in a four-reactor Borstar® PP pilot plant in Austria for the development of innovative, advanced multimodal PP solutions.

Borouge, the joint venture between Borealis and the Abu Dhabi National Oil Company, is investing to meet the demand growth for innovative plastics solutions from customers in the Middle East and Asia.

Borouge 2, the multi-billion dollar expansion of Borouge’s production facilities in Abu Dhabi, United Arab Emirates, will triple existing production capacity to two million tonnes per year and produce for the first time, polypropylene. The early works phase of construction is progressing and Borouge 2 is scheduled to be on stream in 2010. This increased output will open new markets for Borouge and contribute to the development of downstream industries in Abu Dhabi and the United Arab Emirates. The Borouge 2 expansion will be complemented by an Innovation Centre for Abu Dhabi which is on schedule to be operational by 2009, and plans to develop a 50,000 tonnes per year compounding facility in Shanghai, China to manufacture high performance polypropylene compounds for applications in the automotive and electrical appliance sectors.

“We continue to invest in our assets and innovation capability to stay competitive on the market and to provide our customers with the value creating solutions they have come to expect over the years,” comments Borealis CEO John Taylor. “Together with Borouge, we will continue to meet the demand in Europe, the Middle East and Asia, and prepare ourselves for the increasingly competitive market conditions.”

“Our investments boost the momentum of our expansion projects to bring additional Borstar enhanced polyethylene and now polypropylene to customers across the Middle East and Asia,” comments Borouge Pte CEO Harald Hammer. “We will quadruple the number of grades we make available to our customers, providing them with complete solution concepts in high performing applications.”

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