Borouge’s Compound Manufacturing Unit in China

Blueprint of Compound Manufacturing Unit in China

Borealis and Borouge are leading providers of innovative, value creating plastics solutions. In order to maintain that mission and capitalise on Mobility’s worldwide expansion plans, a project to serve customers in the automotive industry in China (Asia) from a locally based manufacturing facility was begun at the end of 2008.

The scope of the “Shanghai project” encompasses the implementation of a fully operational Logistics Hub adjacent to the Compounding Manufacturing Unit, an integrated facility with a capacity of 50,000 tonnes per year and expansion potential to 80,000 tonnes per year. The aim of the project is to ensure that we will be a competitive and preferred supplier to the growing local automotive market.

Market development and pre-marketing activities are increasing with efforts focused on having the plant fully up and running by mid-2010. Close cooperation with Marketing and Product Development resources in Europe as well as in China are necessary to allow for a proper product transfer and customized manufacturing specifications.

The compounding plant in Shanghai enables Borouge to be closer to its Asian customers, particularly those in the automotive sector. Advanced RTPOs, produced in Europe (and in future in Abu Dhabi),using our proprietary Borstar™ technology, will be used for the compounds.
The local product development capability which includes a state-of-the art scale-up line, and support from the Innovation Centres in Abu Dhabi and Linz, enables us to develop locally based specifications in a timely manner.

Quality control equipment is generally sourced from international, renowned suppliers. The initial purchase orders have been placed and the choice of process technology, based on a best practice approach from the Borealis group, will enhance product consistency.
Our customers can expect the same quality as always – only now, the product will be produced in China.

Key milestones

Compound Manufacturing Unit in China / Summer 2009

End-June:
construction work/installation process ahead of schedule.

July 1:
Max Lackner, Site Operations Manager began his assignment. Recruitment process for employees continues.

July 4:
Six local employees participate in a tailor made training program for compounding (programme used at Borealis’ Schwechat, Austria and Beringen, Belgium sites

2nd week of July:
three compound extruders will arrive in Shanghai.

Mid-July:
relocation from the Sales and Marketing office in Shanghai to the plant in Shanghai/Fengxian.

~180.000 accident free hours accrued. This underscores the excellent safety approach of our constructors and suppliers. Regular safety inspections at site and HSE audits for the overall project are ongoing

Our partners

• Agility - Logistics Service Provider, will procure and construct the infrastructure of the Compounding Unit
• Coperion -extruder provider for designing and installing the lines
• W&H (Windmöller & Hölscher) - supplier for designing and installing the bagging lines
• Maison Whorley Parson – PMC (Project Management Consultant) consultant; together with Borouge, forms the Project Management Team to execute the project

Borealis and Borouge and its partners ensure a state of the art compounding facility to secure product consistency and highest quality level combined with flexibility in service and technical support to our local customers.

We are looking back to a hot summer and it’s going to be an even busier 3rd and 4th quarter for the local project team and BU Mobility in China and Europe but we will make 2010 a reality!