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Borouge awards US$300 million olefins conversion unit contract for Borouge 2 expansion project

Borouge, a leading provider of innovative, value creating plastics solutions, today awarded a contract worth approximately US$300 million for the construction of a new olefins conversion unit (OCU) to Samsung Engineering for Borouge 2, the major expansion project at the company's production facilities in Ruwais, Abu Dhabi in the United Arab Emirates.

The unit, which will convert ethylene into propylene to feed two new Borstar® technology polypropylene plants, will be the world's largest using ABB Lummus licensed technology. Total annual output from the OCU will be 752 kilotonnes of propylene plus 39 kilotonnes of butane-1 – totalling 791 kilotonnes. Work on the OCU will begin on June 25, 2007 and is scheduled to be completed by mid-2010.

Harri Bucht, Chief Executive Officer of the Borouge production company, commented: "The signing of this contract, along with the other Borouge 2 packages, is testament to the momentum of the Borouge 2 project. This expansion is not only a cornerstone of Borouge's continued growth as a company it is a milestone in the growth of the plastics industry in the Middle East. With the technology of this olefin conversion unit Borouge is leading the way in producing propylene monomer to meet the rising demand for Borstar high performance polypropylene in key markets."

Borouge 2 will triple Borouge's annual production capacity to two million tonnes of polyolefins and deliver a step change in Borouge's capacity to meet demand in new geographic and industry markets. With increased reach, Borouge will be even better placed to help customers across the Middle East and Asia-Pacific to develop business opportunities in high performance applications.

In February 2007 Borouge signed a US$1.3 billion contract with Linde Engineering/CCC for the construction of a new ethylene cracker, and earlier this month signed a contract worth approximately US$1.8 billion with Tecnimont S.p.A. of Italy for the construction of three new Borstar polyolefins units (along with associated material handling facilities, laboratory facilities and marine works) and a contract for an estimated value of US$1.2 billion with Tecnicas Reunidas S.A. of Spain to construct the offsite and utility facilities for the expanded plant.


Media Contact
Virginia Mesicek
External Communications Manager

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