Borouge Plc, a leading petrochemicals company providing innovative and differentiated polyolefins solutions, announced an acceleration of its growth plans in its core Asia market, through a strategic consortium, aimed at developing a speciality polyolefins complex in China.
The consortium, comprising Borouge, ADNOC and Borealis, has signed a Project Collaboration Agreement (PCA) with China’s Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical.
The proposed complex in Fuzhou, Fujian Province, is set to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins leveraging both Borealis’ cutting-edge proprietary Borstar technology and Borouge’s extensive sales network. The consortium 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.
This strategic initiative will reinforce Borouge’s premium positioning in the fast-growing market for high-quality differentiated materials and represents a significant step in its international growth ambitions. As part of the consortium, Borouge is aiming to enhance its presence in China, the world’s single largest and fastest growing polyolefins market, where petrochemical self-sufficiency is being prioritised and further expanding the company’s strong market position.
The proposed project will leverage Borouge and Borealis’ industry and commercial expertise, as well as technology, supply-chain and logistics synergies across the ADNOC Group. It will also benefit from Wanhua Chemical’s strong track record and network in the Chinese market, along with China’s competitive construction and energy costs, as well as its accelerated execution timelines. The partners are committed to achieving net zero emissions and developing products that promote the circular economy and intend to power the planned specialty polyolefins complex with 100 percent 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 serves as a hub for polyolefin demand, with China accounting for 40 percent of global consumption. Borouge has established a strong presence in China, operating an application centre and a compounding centre in Shanghai and in 2023, almost 30 percent of Borouge’s revenue was derived from China, underscoring the company’s commitment to drive strong growth in the country. Borouge supplies premium materials across a wide range of customer segments, including infrastructure, renewable energy, electric vehicles, and advanced packaging.
