Abu Dhabi: Abu Dhabi-based polymer manufacturer Borouge yesterday formally signed $3.1 billion contracts for Borouge 2, the major expansion project at the company's production facilities in Ruwais, Abu Dhabi.
Harri Bucht, chief executive of Borouge and Fabrizio Di Amato, chairman of Tecnimont of Italy, Juan Ilado Arburua, vice-chairman and CEO of Tecnicas Reunidas of Spain, signed the contracts for their respective companies.
The contract with Tecnimont, worth approximately $1.85 billion, is for the construction of three new Borstar technology polyolefins units and associated material handling facilities, laboratory facilities and marine works.
Largest contract
This is the largest supplier contract Borouge has signed since its inception as a company in 1998 and is awarded on a lump sum turnkey basis.
The contract with Tecnicas Reunidas, worth an estimated $1.23 billion, is for the construction of the offsite and utility facilities for the expanded plant, and is awarded on a convertible lump sum turnkey basis.
Preliminary work will begin immediately and both contracts are scheduled to be completed in 2010.
Harri Bucht said, "Today marks a major step forward in our expansion plans and signing these contracts lays down a path to tripling our production capacity by 2010.
"This is a major project that demonstrates the commitment and ambition not just of Borouge but of the petrochemical industry in the Gulf.
"We look forward to working closely with our new partners to make it a reality."
The Borouge 2 project will increase Borouge's annual production capacity to two million tonnes of polyolefins, including for the first time, polypropylene.
Harald Hammer, chief executive of Borouge marketing company commented: "Market acceptance of the Borstar range since Borouge's inception in 1998 has been exceptional. These contracts increase the momentum of the Borouge 2 expansion bringing additional Borstar Enhanced Polyethylene and now Borstar Enhanced Polypropylene to customers across the Middle East and Asia-Pacific.
By quadrupling the number of grades we will serve our innovative customers with complete solution concepts in high performance applications."
