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Borealis to invest €46m in Sweden, Finland projects

ICIS News : 30-Jan-13 15:59

(adds details on C4 stream)

LONDON (ICIS)--Borealis will invest €46m ($61m) into its European manufacturing plants in Stenungsund, Sweden and Porvoo, Finland, to help strengthen the group’s regional supply, the Austria-based producer said on Wednesday.

The company will invest €21m into its cracker complex in Stenungsund in order to upgrade the facility’s existing C4-based raffinate-1 and raffinate-2 streams to meet required product specifications for the delivery of n-butenes, it said.

Borealis said the n-butenes will be used to produce the chemical intermediate valeraldehyde and its derivatives.

In April 2011, Sweden-based specialty chemicals maker Perstorp said its plans to start up a di-propyl heptyl phthalate (DPHP) plasticiser plant in Stenungsund had been put on hold until 2014 awaiting for investments by its raw material supplier, Borealis, and as a result of the global economic crisis.

The project, which will include the production of intermediates valeraldehyde and 2-propyl heptanol (2-PH) alcohol, was originally scheduled to start up in 2011.

Jerker Olsson, manager of the Perstorp’s oxo business, in April 2011 had said start-up of the new project, which will have the capacity to produce more than 100,000 tonnes/year of 2-PH alcohol, most of which will be converted into DPHP, will coincide with the supply of C4-based raffinate 2 raw materials from Borealis’ cracker complex at Stenungsund.

Borealis said its investment at Stenungsund is scheduled for completion by March 2015 with the project contracting process having already begun last month. It is not clear whether Borealis' announced completion date will have an impact on Perstorp's DPHP project.

Although an official statement from a Perstorp spokesperson was not immediately available, a company source said the DPHP plant can get hold of raw materials elsewhere but added it was likely production will not be running at 100% capcity until 2015.

In Porvoo, Borealis will replace a 30-year old hot oil heater unit at its phenol complex. The installation of the new heater, scheduled for 2015, will help improve efficiency and site integration, the company said.

Borealis added that the new unit, which is costing €25m, will reduce maintenance requirements and carbon dioxide (CO2) emissions.

Mark Garrett, Borealis CEO, said: “The upgrade projects in Stenungsund and Porvoo indicate our commitment to European locations and the customers and markets they serve, whilst making an important contribution to our Base Chemicals business.”

Khadem Al Qubaisi, chairman of the Borealis supervisory board, said: “The Supervisory Board’s approval of these two investments underlines their support for Borealis’ strategy to have one of the youngest fleets in Europe and the role of these facilities in sustaining Borealis’ local and global commitment to create value for customers.”

($1 = €0.74)

Additional reporting by Anna Jagger

By Franco Capaldo
+44 (0)20 8652 3214

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