02 July 2010 11:08 [Source: ICIS news]
LONDON (ICIS news)--Borouge has signed three major engineering, procurement and construction (EPC) contracts valued at about $2.6bn (€2.1bn) for its Borouge III expansion in Ruwais, Abu Dhabi, in the United Arab Emirates (UAE), Austrian chemical company Borealis said on Friday.
Two contracts were signed with a joint venture consortium between Maire Tecnimont of ?xml:namespace>
The first of the two contracts, worth $1.26bn, was signed for the construction of two polyethylene and two polypropylene units, with an annual capacity of 1,080,000 tonnes/year and 960,000 tonnes/year respectively, while the second contract, worth $400m, was agreed for the construction of a 350,000 tonnes/year low density polyethylene (LDPE) unit.
A third contract for the utilities and off-site facilities for the expanded plant was signed with South Korea's Hyundai Engineering and Construction and was worth $935m, Borealis added.
The signing ceremony took place at the Sheikh Khalifa Energy Complex in Abu Dhabi in the presence of Abu Dhabi Polymers Company’s (Borouge) CEO, Abdulaziz Alhajri; Roberto Bertocco, managing director of Tecnimont; Kiseok Park, CEO and president of Samsung Engineering; and Jung Kyum Kim, president and CEO of Hyundai Engineering and Construction, it said.
“Signing these contracts represents an important milestone in the fulfilment of Borouge’s growth strategy in the Middle East and
“In addition to the pipe, automotive and advanced packaging markets that we serve today, our investment in low-density polyethylene production will spearhead our ability to manufacture innovative solutions for the global wire and cable market,” he added.
Borealis said the investments would quadruple Borouge’s production capacity to over 4.5m tonnes per year by 2013, making it the largest integrated polyolefins site in the world.
In May, Borouge formally signed a $1.075bn construction contract with Linde for the 1.5m tonne/year Borouge III cracker.
Borouge is a joint-venture between the Abu Dhabi National Oil Company (ADNOC), and Borealis.
($1 = €0.80)
To discuss issues facing the chemical industry visit ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|