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Borouge and Borealis announce world-class Innovation Centre in the UAE

Borouge and Borealis, leading providers of value creating, innovative plastics solutions, today announced the establishment of a major innovation centre in the UAE. The centre represents a significant investment in Borouge's research capabilities to meet customer needs in the Middle East and Asia Pacific regions. The innovation centre, jointly developed by Borouge and Borealis, will concentrate on developing practical solutions for plastic material applications and be fully operational in 2009. It will be located in Abu Dhabi City and is expected to employ up to 45 technical staff in the initial phase.

As well as benefiting existing customers, the centre forms part of the strategic expansion of both Borouge and Borealis across the region, underlining their joint commitment to value creation through innovation. The innovation centre will also closely complement Borouge 2, the planned multi-billion USD expansion which will see annual production at Borouge's manufacturing site in Ruwais, UAE triple to two million tonnes. With the establishment of research capabilities of this kind, the centre will make a strong contribution to the growth of downstream industries in Abu Dhabi and the UAE.

The Abu Dhabi innovation centre will work with Borealis´ innovation centres across Europe, which includes an international innovation centre in Linz (Austria), a catalyst and process research innovation centre in Porvoo (Finland) and a merged innovation centre in Scandinavia. Borouge and Borealis will continue to enhance their research projects through partnerships with academic institutes of excellence. Borealis' innovation centre in Linz will collaborate with JKU, the Wels Advanced Technical College, the University of Leoben and polytechnic institutes in Austria. Now, a similar partnership between Borouge´s innovation centre and the Petroleum Institute of Abu Dhabi will be developed, supporting the creation of a favourable environment for innovation in the Middle East and Asia.

Hubert Puchner, Chief Executive, Borouge Pte, commented: "Innovation is, and will always be, at the heart of what Borouge stands for. By building on our extensive expertise in plastics solutions, this world-class innovation centre will further strengthen capabilities in the region and enhance our ability to meet the increasingly sophisticated requirements of customers. This is all part of our vision of 'Shaping the Future with Plastics'."

Harri Bucht, Chief Executive Officer, Abu Dhabi Polymers Company, commented: "This will ensure that Borouge continues to lead the plastics industry in providing innovative solutions that make a real difference to everyday life. The centre will add value to our customers and will also support our increasing capacity to serve growing markets in the Middle East and Asia."

John Taylor, Chief Executive Officer Borealis commented: "This announcement is a key milestone in our common strategy to deliver innovative, value adding plastic solutions to our customers internationally. The partnership with the Petroleum Institute in Abu Dhabi will further demonstrate our commitment to research and technology and our support to the science community in the Middle East and Asia."

END

Media Contact
Virginia Mesicek
Senior Manager a.i., External Communications

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