01-Jun-2010 - Borouge

Borouge signs an agreement to build second compounding plant in China

Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis announced its intention to build a second manufacturing plant in China at the signing of an agreement with the Nansha Municipal Government on May 28, 2010.

Speaking at the signing ceremony in Guangzhou,China, William Yau, CEO of Borouge's Marketing Company said: "It is our intention to be a reliable supplier to the rapidly growing automotive and appliance industries in China and therefore we have decided to invest in a second compounding plant that produces tailor-made resins in close proximity to our customers."

This announcement closely follows the inauguration of Borouge's first compounding plant in Shanghai on April 20, 2010, and presents the opportunity for the company to strengthen its presence in China. Construction work on the plant is expected to be completed by the middle of 2012. Provision will be made to produce up to 105,000 tonnes of compounded polypropylene resins annually. The new compounding plant will also benefit from the Application Research and Development Centre being established in Shanghai and the Innovation Centre being built in Abu Dhabi, UAE.

Borouge's commitment to China is further underlined by the set of its Guangzhou office in the beginning of 2010, and its logistics hub located in the Nansha district of Guangzhou.

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