06 May 2010 16:44 [Source: ICIS news]
By Franco Capaldo
LONDON (ICIS news)--Borealis will look to take advantage of import growth in ?xml:namespace>
Mark Garrett said that Borealis had been producing at full capacity for the past four years at the 600,000 tonne/year polyethylene (PE) plant at Ruwais, Abu Dhabi, that was built in the first stage of its Borouge joint venture with Abu Dhabi National Oil Company (ADNOC). This meant that it had been unable to take advantage of China's growth in that period.
However, with Borouge 2 due to start up this month at Ruwais - comprising a 1.5m tonne/year cracker, a 540,000 tonne/year PE plant and an 800,000 tonne/year polypropylene (PP) plant - Borealis was hoping to finally take advantage of demand growth in Asia.
Despite a forecast growth in sales volumes, Garrett said Borealis was ready for possible difficulties in the second half of the year.
“This year the two new projects [Borouge and Stenungsund,
“Then of course we expect a significant change in Borealis’ company results next year,” he added.
However, Garrett was wary of a dependence on
“The world has become more dependent over the last two years as the western economies suffered and in some cases have fallen apart. Chinese growth is something that the rest of us have been living off and, if that would stop, I think you would see a very painful experience for the world,” he said.
The CEO added that Borealis’s new 350,000 tonne/year low density polyethylene (LDPE) plant at
“We have put the hydrocarbons in and we are pressurising it up. We are hoping to have pallets in the hand very soon; in the next week or two,” Garrett said.
Additionally Garrett said that Borealis would remain cautious over the next six months and would be keeping an eye on
“We see issues certainly going forward in
However, Garrett said Borealis was in a fortunate position because geographically, the group’s plants focused on Scandinavia and
Daniel Shook, Borealis’ chief financial officer (CFO), said the group had planned for certain scenarios.
“We set out to make sure a very good liquidity position and over the last 18 months we have continued to term out the debt,” he said.
As part of its strategy to further diversify its financing sources, Borealis seeked to raise up to €200m ($256.4m) in an inaugural bond issue for launch in
“That gives us a lot of dry powder to weather what comes,” Shook added.
Earlier on Thursday, Borealis reported a return to a first-quarter net profit of €54m, compared with a net loss of €56m recorded in the same period last year, as feedstock and polyolefin market prices continued to increase.
($1 = €0.78)
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