January 17, 2007

Borouge and Borealis celebrate five years of production in the UAE

Borouge and Borealis, the leading providers of innovative, value creating plastics solutions in the Middle East, Africa, Asia-Pacific and Europe, celebrated Borouge's fifth year of production.

Chief Executive Officer of the Borouge Production Company, Harri Bucht said that the five year production milestone at Borouge's plant in Ruwais, Abu Dhabi is an extraordinary success for a facility conceived so recently, and represents a major achievement for the polyolefins industry in the Middle East as a whole.

A total of around 2.3 million tonnes of polyethylene (PE) have been produced by Borouge, providing innovative solutions for customers in the infrastructure, automotive and advanced packaging sectors. To date, enough PE for pipe applications has been made at Ruwais to stretch a typical 110 millimetre diameter water pipe six times round the world.

The Ruwais complex was the first bimodal PE unit in the Middle East, beginning production December 2001 and exceeding design capacity within five months. ISO 9001 certification was achieved after just nine months and since then, Borouge has become a benchmark for operational excellence in the region. It has been at the forefront of adopting best practice in health, safety and environment, achieving ISO 14001 certification in December 2006.

'Borouge 2', the multi-billion dollar expansion of its production facilities will come on stream in 2010 and commenced last month with the signing of an agreement with Linde Engineering to build a new ethylene cracker. This world-scale project will triple existing production capacity to two million tonnes per annum, including, for the first time, polypropylene. This increased output will open new markets for Borouge and is expected to make a strong contribution to the growth of downstream industries in Abu Dhabi and the wider region.

Harald Hammer, Chief Executive Officer of the Borouge Marketing Company commented: "Five years of production is a major achievement for Borouge. It underlines the extraordinary progress that has been made since our inception so recently. Our next phase of expansion will ensure we continue to make a difference to our customers and better serve our growing markets in the Middle East and Asia Pacific."

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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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