Communicator

Abu Dhabi, UAE | 28 April 2025 -- Borouge Plc has announced a series of strategic expansion projects that will increase its annual polyolefin production capacity to over 6.6 million tonnes by 2028. The company has awarded two major contracts to support this growth, with the initiatives expected to contribute between $165 million and $200 million to annual EBITDA

Linde Engineering has been selected to provide Front-End Engineering Design services for the upgrade of Borouge’s second ethane cracker (EU2), which will add 230,000 tonnes per year and boost the unit’s capacity by 15%. This expansion is scheduled for completion in the fourth quarter of 2028, with ethane feedstock supplied by ADNOC Gas and ADNOC Refining

In parallel, Target Engineering Construction Company has secured an engineering, procurement, and construction contract to expand Borouge’s fourth and fifth polyethylene units (PE4 and PE5). These upgrades will increase the nameplate capacity of each unit from 540,000 to 700,000 tonnes per year, utilizing advanced Borstar Polyethylene technology. The expanded units are expected to be operational in the first quarter of 2027

These developments follow Borouge’s track record of rapid growth since 2001, having increased its production capacity tenfold to reach 5 million tonnes per year. The new expansions, together with the Borouge 4 mega project and the proposed combination with Borealis and the acquisition of Nova Chemicals, position Borouge to become one of the world’s leading polyolefin producers, with a combined capacity of 13.6 million tonnes across 62 plants globally.

#borouge  #borealis  #ethyleneplant  #borstar  #linde  #capacityexpansion  #uae  #unitedarabemirates #polyethylene 

Vienna, Austria / Abu Dhabi, UAE — March 4, 2025

In a landmark move reshaping the global petrochemicals industry, Austria’s OMV and Abu Dhabi National Oil Company (ADNOC) have unveiled plans to merge their chemical subsidiaries, Borouge and Borealis, into a new entity named Borouge Group International. This new company will then acquire Nova Chemicals, a leading North American polyethylene producer, for $13.4 billion, including debt. The combined enterprise, valued at over $60 billion, is poised to become one of the world’s largest polyolefins producers, with a production capacity of approximately 13.6 million tons per year. The transaction, expected to close in the first quarter of 2026 pending regulatory approvals, underscores both companies’ ambitions to expand their global chemicals footprint.

The deal involves two key steps.
First, OMV, which owns 75% of Borealis, and ADNOC, holding 54% of Borouge, will consolidate their shareholdings into Borouge Group International. Each company will own approximately 46.94% of the new entity, with the remaining 6.12% offered as free-float shares to Borouge’s existing shareholders. To balance the ownership, OMV will contribute €1.6 billion (about $1.7 billion) in cash, subject to adjustments based on dividends paid before the deal closes.
Second, Borouge Group International will acquire Nova Chemicals from Mubadala Investment Company, an Abu Dhabi sovereign wealth fund, for an enterprise value of $13.4 billion. The equity value of the deal is reported at $9.377 billion, with the remainder comprising assumed debt. Nova Chemicals, based in Canada, operates four production sites in the Sarnia area, boasting a capacity of 2.6 million tons of polyethylene and 4.2 million tons of ethylene annually. The resulting company will combine Borouge’s dominance in the Middle East and Asia, Borealis’ leadership in Europe, and Nova Chemicals’ strong foothold in North America, creating a truly global player in the polyolefins market.

The formation of Borouge Group International and its acquisition of Nova Chemicals promise to reshape the industry. The merger unites Borouge’s access to competitive feedstock from ADNOC, Borealis’ European market expertise, and Nova Chemicals’ North American operations, bolstered by shale gas-based resources. This geographical diversity strengthens the company’s ability to serve customers worldwide. With an estimated $500 million in annual cost synergies, the new entity will optimize production, share cutting-edge technologies, and leverage combined market access. The company aims to rank as the fourth-largest polyolefins producer globally, enhancing its competitiveness. Sustainability is also a key focus, with all three companies—Borouge, Borealis, and Nova Chemicals—bringing expertise in recycling technologies and sustainable products. Borouge Group International is positioned to lead in the circular economy, targeting net-zero Scope 1 and 2 emissions by 2050.

Borouge Group International will be headquartered in Vienna, Austria, with a regional base in Abu Dhabi, UAE, and additional hubs in Calgary, Pittsburgh, and Singapore. The company will be listed on the Abu Dhabi Securities Exchange (ADX), with potential plans for a secondary listing in Vienna. Existing Borouge shareholders will exchange their shares for stakes in the new entity, with promises of dividend growth. The acquisition of Nova Chemicals will be funded through debt, which the company plans to refinance in the capital markets post-closing, reflecting confidence in its long-term financial stability backed by ADNOC and OMV.

#abudhabi  #omv  #novachemicals  #borouge  #borealis  #merger  #ethylene  #polyethylene  #recycling  #sustainability  #circulareconomy #netzero #shalegas  #mubadala