08 December 2010 06:58 [Source: ICIS news]
By Prema Viswanathan
DUBAI (ICIS)--Borouge is looking at penetrating the largely untapped northern ?xml:namespace>
"With our distribution hubs and compounding plants in Shanghai and Guangzhou, we will be in a strong position to service the eastern and southern China markets…We now need to look at the northern part of the country, which has huge potential for growth," Borouge Pte Ltd CEO William Yau told ICIS in an interview.
Yau was in Dubai for the three-day 5th Gulf Petrochemicals and Chemicals Association (GPCA) forum that will run upto 9 December.
Meanwhile, Borouge is enhancing its presence in southern
The company was planning to build a 100,000 tonne/year polypropylene (PP) compounding plant at the site, he said.
"We expect the plant to start up by 2012 and complement the downstream support we are providing through the existing compounding plant in
A similar strategy of establishing local presence in other key markets would be pursued, he said.
"We have to look long term so that we have our support system on the ground when Borouge III [at Ruwais in Abu Dhabi] starts up, bringing our polyolefins capacity to 4.5m tonnes/year by end 2013," he added.
Yau said that Borouge is expanding its sales and marketing presence in
"We now have 17 staff in our office in Mumbai and will soon be setting up a new office in
Compounding and distribution facilities were expected to follow later.
Borouge II, also at Ruwais, was operating well and the company was slowly ramping up capacity at the complex, Yau added.
"But we expect the full 2m tonne/year output only next year, although we have begun to produce and sell small volumes of the different polyethylene (PE) and PP grades already," he said.
Yau said he was "cautiously optimistic" about the market outlook for the coming year. "The fundamentals are still there. In key markets such as
Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and
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