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Borouge to build logistics hub in Guangzhou, China

Borouge, a leading provider of innovative, value creating plastics solutions, has today signed a service contract with Enpro Supply Chain Management Limited to build the Borouge Guangzhou Logistics Hub in the Nansha area of Guangzhou, China. The contract ensures local logistics services for Borouge's customers in Asia for ten years with effect of the start up date of Borouge 2 in 2010.

Enpro will undertake the design, development and subsequent operation of the logistics hub, in order to ensure sufficient infrastructure, storage facilities, packaging and distribution services. This long term partnership fully supports Borouge's future supply chain strategy. Enpro will handle and distribute a total volume of approximately a 246.000 tonnes of value added polyolefins annually through the Guangzhou Logistics Hub.

The signing ceremony was attended by Mr. Rashed Saud Al Shamsi, ADNOC's Petrochemicals Director and Chairman of the Board of Directors of Borouge Pte, and Mr. Henry Sperle, Executive Vice President, Middle East & Asia, Borealis.

The ceremony was also attended by the People's Republic of China Ambassador to the UAE, His Excellency Gao Yusheng, together with a delegation of high ranked Officials from the Nansha District Government, lead by Mr. Tang Hanghao, Vice Secretary General of the Guangzhou Municipal Government, Mr. Li Yao Xin, Chairman of Enpro, Mr. Zhuang Ruijin, the Economic & Commercial Counselor as well as other representatives from both parties.

Abdulaziz Alhajri, Chief Executive Officer of Abu Dhabi Polymers the manufacturing Company of Borouge emphasized that "The Guangzhou logistics hub is one of several regional logistics hubs that will provide storage and logistics support for our operations close to our customers. It will enable us to provide a fast, flexible delivery service to our customers. Enpro comes to us with a well thought logistics plan backed up by a strong local knowledge of the Guangzhou area and the China market as a whole. Hence, we had no hesitation to select them as a partner in this endeavor."

Sheung T. Poon, Director and General Manager of Enpro stated: "At Enpro we provide local solutions for global scale projects and requirements. For the Borouge Guangzhou Logistics Hub, we combined our chemical logistics experience and local knowledge to provide the required services".

Borouge's current production capacity in the UAE is 600,000 tonnes of Borstar® polyethylene per year. With the ongoing Borouge 2 project expansion, this capacity will increase to 2 million tonnes per year by the middle of 2010 and will add polypropylene to the product mix. Construction of the Borouge 2 facility has already started and consists of a 1.5 million tonnes ethane cracker, the world's largest olefins conversion unit (with a capacity of 750,000 tonnes), two Borstar® polypropylene plants with a total capacity of 800,000 tonnes and a 540,000 tonnes Borstar® polyethylene plant.

Ends

For further information please contact:

Borouge:
Yahya Al Marzouqi, Acting Group Communications Manager
Abu Dhabi, UAE
Tel. +971 2 6070 007
Email yahya.almarzouqi@borouge.com

Borealis:
Kerstin Meckler, Media Relations Manager
Vienna, Austria
Tel. +43 122 400 389
Email: kerstin.meckler@borealisgroup.com

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