Borealis, a leading provider of innovative, value creating plastics solutions, will invest EUR 370 million in Stenungsund, Sweden, , enhancing its capability to provide advanced materials for the growing wire and cable market, as well as for the Nordic packaging market.
The project, due for completion at the end of 2009, includes a new 350,000 t/y high-pressure LDPE plant, modernisation and streamlining of compounding, and related material handling facilities. 230,000 t/y of old, high-cost polyethylene capacity will be shutdown.
This significant investment builds upon the cross-linkable polyethylene (XLPE) capacity coming on stream during the second half of this year. It also reinforces Borealis' commitment to the wire and cable industry and the development of infrastructure systems that ensure safe and reliable electricity supplies to consumers and industries.
"With well-known brands such as Supercure® and Visico®, Borealis is already an established provider of high value added materials for wire and cable infrastructure applications," says Borealis Polyolefins Executive Vice President David Rolph. "Investment is essential for value creation in this business. We are building on our leadership and experience in the wire and cable, and advanced packaging markets, to provide advantages for the entire value chain."
"This investment will also enable us to maximise the flexible feedstock-olefin-polyolefin integration at Stenungsund and, by improving our overall asset competitiveness, ensure long-term, profitable growth for the site," adds Borealis Scandinavia General Manager Roy Vardheim. The total polyethylene capacity at Stenungsund will increase from 580,000 t/y to 700,000 t/y, making it a leading world-scale facility for advanced infrastructure applications.
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Borealis and Borouge are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.
For more information on Borealis and Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company, visit www.borealisgroup.com and www.borouge.com.
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