Borouge’s Abu Dhabi plant on track to deliver

27.10.2010

Borouge's first PP plant in Ruwais, Abu Dhabi.

Borouge 2, Borouge's US$5 billion mega-project in Abu Dhabi, UAE on track
Polyolefin production capacity tripled to 2 million tonnes per year
Expanded plant includes the world's largest ethane cracker and olefins conversion unit
Polypropylene manufacturing capability added to Borouge's production portfolio

At the K-2010 Fair in Dusseldorf, Germany, Borouge, a leading provider of innovative, value creating plastics solutions, confirmed that its expanded plant in Abu Dhabi, UAE, is starting-up as planned.

The mega-project Borouge 2, valued at an estimated US$5 billion, triples the annual polyolefins production capacity of the plant to 2 million tonnes per year. This marks a significant increase in the Company's capability to serve its customers with innovative plastics solutions for infrastructure applications (including pipe systems, and power and communications cables), automotive components and advanced packaging.

Borouge's has introduced two new Borstar® enhanced polypropylene (PP) units to the plant, each with an annual production capacity of 400,000 tonnes, and almost doubled its polyethylene (PE) annual production capacity to over 1.14 million tonnes. The unique bimodal Borstar process and catalyst technology from Borealis enables Borouge to provide a differentiated range of PE and PP solutions to its customers. The expanded plant also boasts the world's largest ethane cracker and olefins conversion unit for the production of propylene.

In order to enhance and optimize its service to its customers, Borouge has established logistics hubs in Abu Dhabi, Singapore and China, and is working closely with its customers and the market to develop robust supply chains that meet their needs.

In China, Borouge has invested in a manufacturing plant in Shanghai for the rapidly growing automotive and appliance markets in Asia, and a second plant is planned for Guangzhou.

To meet specific customer application demands and to lead the way in the development of the next generation of plastics solutions, Borouge is building an Innovation Centre in Abu Dhabi, to be completed by the end of 2011.

The Future
Despite the volatile global economic environment, Borouge continues to forged ahead with its plans to significantly increase the production capability of the plant with the full support of its owners, world-leading gas and oil company Abu Dhabi National Oil Company (ADNOC) and Austria based Borealis, a leading provider of chemical and innovative plastics solutions.

Through its project Borouge 3, the company is further expanding the petrochemical plant in Abu Dhabi by 2.5 million tonnes per year to a total annual capacity of 4.5 million tonnes by the end of 2013, creating the world's largest integrated polyolefins plant.

Borouge Capacity Overview - Abu Dhabi

2.1 million tonnes of ethylene per year (EU1/EU2)
Olefins Conversion Unit 752,000 tonnes of propylene per year (OCU)
1,14 million tonnes of polyethylene per year (PE1/PE2/PE3)
800,000 tonnes of polypropylene per year (PP1/PP2)

Borouge Capacity Overview - Shanghai

50,000 tonnes per year of polypropylene compounded resins

For further information, please contact:

Kerstin Meckler
Communications Director
+43 122 400 389
kestin.meckler@borealisgroup.com

Craig Halgreen
Vice President, Global Communications, Borouge
+971 2 6070807
craig.halgreen@borouge.com

Maggie Chen
Communications Manager, Borouge
+86 21 6137 6805
maggie.chen@borouge.com

About Borealis and Borouge

Borealis is a leading provider of chemical and innovative plastics solutions that create value for society. With sales of EUR 4.7 billion in 2009, customers in over 120 countries, and 5,200 employees worldwide, Borealis is owned 64% by the International Petroleum Investment Company (IPIC) of Abu Dhabi and 36% by OMV, the leading energy group in the European growth belt. Borealis is headquartered in Vienna, Austria, and has production locations, innovation centres and customer service centres across Europe and the Americas.

Through Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company (ADNOC), one of the world's major oil and gas companies, the company's footprint reaches out to the Middle East, Asia Pacific, the Indian sub-continent and Africa.. Established in 1998, Borouge employs approximately 1,600 people, has customers in more than 50 countries and its headquarters are in Abu Dhabi in the UAE and Singapore.

Building on Borealis' unique Borstar® technology and their experience in polyolefins of more than 50 years, Borealis and Borouge provide innovative, value creating plastics solutions for the infrastructure (pipe systems and power and communication cables), automotive and advanced packaging markets. In addition, Borealis offers a wide range of base chemicals from melamine and plant nutrients to phenol and acetone.

Today, Borealis and Borouge have a manufacturing capacity of over 5.4 million tonnes of polyolefins (polyethylene and polypropylene) per year of which 26% are the result of a recently completed capacity expansion in Abu Dhabi. An additional 2.5 million tonnes per year is scheduled for completion by the end of 2013, creating the world's largest integrated polyolefins plant. The companies continue to invest to ensure that their customers throughout the value chain, around the world, can always rely on superior products and security of supply.

Borouge and Borealis are committed to the principles of Responsible Care® and proactively contribute to addressing the world's water and sanitation challenges through their Water for the World™ initiative.

For more information visit:
Borealis: www.borealisgroup.com
Borouge: www.borouge.com
Water for the World: www.waterfortheworld.net

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