InterviewBorealis braced for lower 2012 growth on economic outlook

11 November 2011 12:52  [Source: ICIS news]

LONDON (ICIS)--Austria-based Borealis is planning for a lower-growth scenario in 2012, because of the debt crisis in Europe, the polyolefins company's CEO said on Friday.

Borealis reported strong third-quarter results, with profit reaching €107m ($145m), but CEO Mark Garrett said the company’s outlook for 2012 depends on decisions EU leaders make about the eurozone debt crisis.

“We wouldn’t be confident of repeating this year's results, because 2011 is on track to be a record year for us,” he said.

“Europe really needs Germany to play the leading role, because the UK has problems of its own and France won’t be able to get [Europe] out of it, because it doesn’t have the industrial base to do it – it has to come from Germany,” he added.

“Politicians do not have a choice and they have to find a solution, which is why we are planning with a low-growth scenario for next year,” Garrett said.

Meanwhile, the company is working on its polyolefins expansion project, Borouge 3, part of a joint venture with Abu Dhabi National Oil Company (Adnoc).  

“We’re on schedule, but the peak of building is at the end of 2012, early 2013. But we expect in 2015 to really see the next step change in profitability in Borealis,” Garrett said.

($1 = €0.74)

By: Leigh Stringer
+44 208 652 3214

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