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Borealis to expand XLPE capacity in Scandinavia

Borealis today announced plans to substantially expand its cross linkable polyethylene (XLPE) capacity in Stenungsund, Sweden in order to meet the growing demand in the power cable industry for the coming decade. The investment of EUR 42 million will enhance cost competitiveness as part of an integrated PE chain at Stenungsund. The additional capacity is expected to be available during the second half of 2007.

Growth in power cables is driven by the need for underground solutions in urban and environmentally sensitive areas and to improve the security of supply for example in areas prone to high winds or excessive ice and snow.

"This investment will support the continued growth and development of our leading position in advanced materials for the power cable industry," commented Executive Vice President Polyolefins Business. Power cables are used for the transmission and distribution of electrical power in the utility networks and in industrial operations at voltages between 1 and 500 kV. XLPE insulation and semi conductive compounds are highly specialised, advanced materials used in power cables.

Borealis has a full product range marketed under trademarks such as SuperCopo, Supercure, SuperTR and Superclean.

END

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Virginia Mesicek
External Communications Manager

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