Borealis is a fully integrated petrochemical company. Its main business includes supplying the plastics manufacturing industry with raw materials such as polyethylene (PE) and polypropylene (PP). It also supplies ethylene, propylene, phenol and aromatics.
Borealis currently has around 5,385 employees and sales of around Euro6.7bn (2008). Headquartered in Vienna, Austria, it also has production sites and compound units in Austria, Belgium, Brazil, Finland, Germany, Italy, Singapore, Spain, Sweden, Turkey, United Arab Emirates and the US.
History
Since June 2005, Borealis is owned by the International Petroleum Investment Company (IPIC) of Abu Dhabi (64%) and by OMV, the Austrian oil and gas group (36%).
Borealis was previously owned by Statoil (50%), OMV (25%), and IPIC (25%). It became operational in March 1994.
Company movements
In February 2009, Borealis reached an agreement to sell its melamine and additives business and operations in Castellanza, Italy, to investor group Borgo Olona for an undisclosed sum. (For more on this story please go to ICIS news).
In April 2008, Abu Dhabi’s IPIC signed an agreement with Borealis and the Abu Dhabi Investment Council to build a large-scale integrated olefins and aromatics complex in the Middle East emirate.
The project, named Chemicals Industrial City, will comprise of a naphtha cracker, downstream ethylene and propylene derivatives plants, a reformer, and xylene, benzene, cumene, phenol and derivatives units. The first phase is expected in 2013.
In August 2007, Ineos completed the Euro290m ($394m) acquisition of Borealis’ petrochemicals business in Norway. The business included a 50% interest in the Noretyl ethylene cracker at Rafnes and three polyolefin plants producing polypropylene, low density polyethylene (LDPE) and high density polyethylene (HDPE) at the nearby Bamble site.
Borealis is structured into two business groups: Polyolefins and Base Chemicals.
Polyolefins
Pipe systems
The applications cover water and gas distribution, waste and sewage disposal, chemical and industrial projects, in house plumbing and heating as well as oil and gas exploration and transport.
Energy and communication cables
The applications are used in low, medium and high-voltage energy transmission and distribution cables, in data and communication cables, and in building and automotive wires.
Automotive
Borealis supplies a wide range of plastics solutions to the automotive industry that are used for dashboards, door side claddings, front ends, air vent systems, bumpers and under body shielding.
Advanced packaging
Applications as diverse as healthcare, courier bags, food packaging, flexible and rigid transport packaging, bottles, crates, boxes, trays, large containers and pallets.
Base Chemicals
Feedstocks and olefins
Borealis sources basic feedstocks (such as naphtha, butane, propane and ethane) from the oil and gas industries and converts these into ethylene and propylene through its olefin units.
Phenol and aromatics
Phenol, benzene and cumene as well as acetone are sold mainly to the adhesive, fibre, epoxy resin and polycarbonate industries in northern Europe. Phenol is used in adhesives, construction materials, carpets, CDs, DVDs, mobile phones and household appliances.
Melamine and plant nutrients
Melamine and plant nutrients are produced at its facility in Linz, Austria. Melamine products include coatings, compounds for house ware, concrete liquefiers, paint resins, fibreboard binders, special resins for textile and paper finishing, and fire blockers.
Joint ventures
Abu Dhabi Polymers Company, United Arab Emirates: 40% share
Borouge Pte: 50% share
Speciality Polymers, Antwerp, Belgium: 33% share
Borealis Financial Services, Jersey: 25% share
Borealis
Strategy & Financial Highlights
Borealis states that its strategy based on “value creation through innovation” matched with its “cutting-edge” Borstar technology is what makes the company “unique”. It believes that the years ahead will be exciting but also very challenging. However, it will keep to its value creation strategy through innovation, providing solutions to its key markets in infrastructure, automotive and advanced packaging across Europe, the Middle East and Asia. (Edited from annual report and company website). ICIS also provides you with key financial data listed in table form.
More about Borealis Strategy & Financial Highlights