Products
Downloads
Locations / Sites
Contacts
Download list
Back to News

Borealis and UCC sign Joint Development Agreement in Abu Dhabi for advancing world-scale polyethylene project during the visit of the President of Kazakhstan with the Crown Prince of Abu Dhabi

Borealis and United Chemical Company LLP (UCC) have signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan.  

Simultaneously, a government support agreement was signed between the two companies and Samruk-Kazyna Chief Executive Akhmetzhan Yessimov as well as the government of the Republic of Kazakhstan, represented by the Minister of Energy, Mr. Kanat Bozumbayev. A Memorandum of Understanding (MoU) was also signed to cooperate on a 500 ktpa polypropylene project that is currently being implemented by Samruk-Kazyna Sovereign Wealth Fund and is under construction. The agreements were ceremoniously signed in Abu Dhabi on 24 March 2018 by the Ministers of Energy of Kazakhstan and of the UAE, in the presence of the President of Kazakhstan, H.E. Nursultan Nazarbayev and the Crown Prince of Abu Dhabi, H.H. Mohammed bin Zayed bin Sultan Al-Nahyan.  

The companies, represented by Mark Garrett, Borealis Chief Executive and by Zhenis Osserbay, UCC Chief Executive, then also signed the agreements.   

The signing of the JDA comes after the successful conclusion of a pre-feasibility study. The project will now move into the feasibility study phase, which is expected to run until Q1 2019. After the successful completion of the feasibility study confirming the attractive project parameters, a local JV with UCC will be set up*.  

The scope of the JDA will include the construction of an ethane cracker and 2 Borstar® PE units, with a total capacity of 1.250 ktpa and with a pre-investment in the cracker for future expansion. The final investment decision on the project is expected to be taken in 2020 and start-up would be scheduled for 2025.  

Through this strategic partnership, Borealis and UCC are exploring the opportunities of jointly developing the Kazakhstan polyolefin industry.   
 
“The project is well aligned with the country’s strategy to develop its petrochemical industry and would serve as a strong basis for establishing Kazakhstan on the global polyolefin market,” said Samruk-Kazyna Chief Executive Akhmetzhan Yessimov.
 
“This project would significantly strengthen Borealis’ position in the CIS markets; adjacent to our home market, with growth rates above WE and significant potential for development of advanced PE business based on our Borstar technology,” said Borealis Chief Executive Mark Garrett.  

“A polyethylene plant of this scale would be a significant step forward in creating long term, sustainable value for Kazakhstan from its petrochemical industry,” said Zhenis Osserbay, UCC Chief Executive. “We look forward to continuing our work with Borealis in developing this opportunity.”
 
* Subject to regulatory approvals
 
END
 
For further information please contact:

Borealis:
Patrick Laureys
Senior External Communications Manager
tel.: +43 (0)1 22 400 726 (Vienna, Austria)
e-mail: patrick.laureys@borealisgroup.com

UCC:
Askar Zhusupov
External Communications
Tel: +7 7172 73 71 27
e-mail: zhusupov@ucc.com.kz

Downloads
Borealis and UCC sign Joint Development Agreement in Abu Dhabi for advancing world-scale polyethylene project during the visit of the President of Kazakhstan with the Crown Prince of Abu Dhabi English, Arabic, Dutch, Finnish, French, German, Russian, Swedish
Media Contact
Patrick Laureys
Senior External Communications Manager

Related News

Media Release – 02/08/2018

Borealis records a strong first half year despite an ongoing challenging fertilizer market environment

Read more

Media Release – 30/07/2018

Borealis realises ambitious energy targets by cutting 5,000 tons of CO2 emissions every five days with the help of DNV GL

Read more

Media Release – 17/07/2018

Borealis to acquire Austrian plastics recycling company Ecoplast Kunststoffrecycling GmbH

Read more

News – 03/07/2018

Industry comes together at EREMA Discovery Days 2018: The Future of the Circular Economy – Innovative Technologies, Effective Strategies

Read more

Media Release – 28/06/2018

Borealis and Henkel cooperation produces plastic bottle and nozzle composed 100% of post-consumer recycled material

Read more

News – 21/06/2018

Henkel, APK, Borealis and Mondi are driving the circular economy of sustainable, flexible multilayer packaging

Read more

News – 19/06/2018

Borealis Innovation Award 2018 honouring the best diploma theses of TGM, school of technology Vienna

Read more

Media Release – 07/06/2018

Borealis and Borouge launch solar encapsulant film based on Borealis Quentys™

Read more

News – 29/05/2018

Polymers for Europe Alliance honors Borealis as best European polymer producer of HDPE and LDPE

Read more