Borouge looking to reinforce momentum in Middle East, Asia

04 June 2013 17:57  [Source: ICIS news]

LINZ, Austria (ICIS)--Borouge is looking to reinforce its business momentum in the Middle East, Indian sub-continent and Asia Pacific region, with the opening of four new offices by the end of the year, a company vice president said on Tuesday.

Tarmo Raudsepp, Borouge vice president for the marketing centre for moulding, said the group will open new offices in Bangkok, Thailand; Delhi, India; Ho Chi Minh City, Vietnam; and Jakarta, Indonesia.

Borouge already in 2013 has opened a representative office in Tokyo, he added.

Raudsepp said there is a global shift eastwards for plastic and polymer demand, driven by an increase in population, rapid urbanisation, a rising middle class, and degradation and freshwater depletion, as well as a growing focus on renewable energy.

In the Middle East and Africa, total demand for polyethylene (PE), polypropylene (PP), high density PE (HDPE), low density PE (LDPE) and linear LDPE (LLDPE) will rise from 12.0m tonnes in 2010 to an expected 19.9m tonnes in 2020.

In northeast Asia, this demand will grow to an expected 69.5m tonnes in 2020 from 41.5m tonnes in 2010, while in southeast Asia, demand is set to grow from 16.2m tonnes to 29.7m tonnes over the same time period, Raudsepp said.

Borouge is a joint venture between the Abu Dhabi state oil company, ADNOC, and the Austria-headquartered plastics, chemicals and fertilizer producer Borealis.

The joint venture is currently increasing its Abu-Dhabi-based plant’s capacity with the Borouge 3 expansion project, that will raise its production to 4.5m tonnes/year of olefins and polyolefins by mid-2014 from 2.0m tonnes/year today.

To put that level of production into perspective, Raudsepp said it was like supplying around 1,100 40-foot shipping containers of product every day for a year.

The majority of this production will be used to supply the Middle East and Asia.

The new offices will be used for commercial activities, including sales, technical service support, and to ensure logistical activities are running efficiently, he said.

Raudsepp added that within this year, a new innovation centre in Abu Dhabi will collaborate with Borealis’ innovation centres in Austria, Finland and Sweden, as well as with local and international educational institutions.

Borouge will also further expand its logistic network to include Tianjin and Ningbo, China, while it is also planning to expand its research and development application centre in Abu Dhabi.

By: Franco Capaldo
+44 (0)20 8652 3214

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