OMV and Borealis celebrate joint investment in Austria

• Borealis upgrades its European assets: inauguration of a 350,000 tonnes per year Borstar® polyethylene plant and expansion of an existing Borstar polypropylene plant from 210,000 to 300,000 tonnes per year in Schwechat (Austria)
• OMV and Borealis follow their integrated feedstock-olefins-polyolefins strategy: expansion of OMV (35% owner of Borealis) cracker in its Schwechat refinery to 900,000 tonnes per year
• Borealis demonstrates its commitment to Value Creation through Innovation: this investment increases Borealis' usage of Borstar proprietary technology to more than a million tonnes per year
• Schwechat becomes a leading location in European plastics industry: EUR 400 million joint investment by OMV and Borealis

More than a thousand customers, academics, politicians, bankers, journalists, suppliers and employees joined OMV and Borealis, in Schwechat, at the inauguration of a new 350,000 tonnes Borstar® polyethylene plant, the expansion to 300,000 tonnes of the Borstar polypropylene plant and the expansion from 650,000 to 900,000 tonnes per year of OMV's nearby cracker. The occasion will be marked with a futuristic multimedia celebration under the theme, 'The Bridge: The journey from oil to plastics'. This joint EUR 400 million investment turns the OMV/Borealis Schwechat location into one of the largest plastics manufacturing sites in Europe with 900,000 tonnes per year production by OMV and more than a million tonnes per year for Borealis.

The construction of the OMV and Borealis plants and cracker began early 2004 and the start-up was according to plan in the Autumn of 2005. The EUR 200 million investment by OMV to upgrade its cracker extends OMV ethylene capacity by 150,000 tonnes to 500,000 tonnes per year and its propylene capacity by 100,000 tonnes to 400,000 tonnes per year. These basic petrochemicals products are delivered by pipeline to neighbouring Borealis plants and used in manufacturing advanced polyethylene and polypropylene plastics. The new Borstar PE plant has enabled Borealis to capture the growing demand for linear low-density PE for enhanced, differentiated film products, for flexible consumer packaging and industrial applications in particular.

Gerhard Roiss, Deputy CEO of OMV and Borealis Chairman of the Board, says: "The joint EUR 400 million investment is the largest single investment ever made in that location and will both strengthen and consolidate the competitive position of Schwechat as a European petrochemical centre. Our refinery products go into mobility and materials. This investment into plastics reflects our increasing emphasis on sustainable business. The synergy of these investment projects is a good example of the successful integration between OMV and Borealis."

John Taylor, Chief Executive, Borealis says: "This inauguration is a major event for Borealis as it clearly demonstrates the continued pursuit of our Value Creation through Innovation strategy. Our Central European hub plays a key role in the implementation of this strategy with the international innovation centre in Linz and now an increased Borstar capacity in Schwechat. I am confident that this strategy will enable us to continue to anticipate our customers needs internationally and develop partnerships for new plastics solutions."

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