A consortium consisting of Borouge, ADNOC and Borealis has initiated a joint feasibility study for a proposed greenfield project consisting of the construction of a new specialty polyolefins complex.The consortium has signed a Project Collaboration Agreement (PCA) with China’s Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical. It intends to establish a Sino-foreign joint venture with Wanrong New Materials (Fujian), with a shareholding ratio of 50:50 respectively, subject to customary regulatory approvals.
For Abu Dhabi-headquartered Borouge, the move reinforces its growth plans in its core Asia market. As part of the consortium, Borouge aims to enhance its presence in China, the world’s largest and fastest-growing polyolefins market, where petrochemical self-sufficiency is being prioritised.
“This strategic growth initiative builds on the robust economic ties between the UAE and China, and offers the potential to create value for Borouge shareholders by accelerating our expansion in China,” said Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said
The proposed complex would be located in Fuzhou, Fujian Province, and would have the capacity to produce 1.6 million tonnes of specialty polyolefins per year.
“The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks,” added Al Suwaidi.
More specifically, it would utilise Borealis’ proprietary Borstar technology and Borouge’s commercial expertise and extensive sales network. It will also foster technology, supply chain, and logistics synergies across the ADNOC Group.
The agreement was signed in Beijing by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC and Chairman of Borouge; Liao Zengtai, Chairman of Board of Wanhua Chemical and Fuzhou Mayor, Wu Xiande. Hazeem Sultan Al Suwaidi, CEO of Borouge PLC, participated in the ceremonial signing on behalf of Borouge as part of the consortium. Kou Guangwu, CEO of Wanhua Chemical Group, participated on behalf of Wanhua Chemical.
The proposed project will benefit from Wanhua Chemical’s strong track record and network in the Chinese market, China’s competitive construction and energy costs, and its accelerated execution timelines.
The partners are committed to achieving net zero emissions and developing products that promote the circular economy. They intend to power the planned specialty polyolefins complex with 100% zero-carbon electricity, supported by the local government.
The final structure of the project and financial commitments will be established following the completion of the feasibility study, which will also explore artificial intelligence (AI) solutions to support automated plant operations.
Asia is a hub for polyolefin demand, with China accounting for 40% of global consumption. In 2023, almost 30% of Borouge’s revenue was derived from China, underscoring the company’s commitment to drive strong growth in the country.