Borouge to build polypropylene resin plant in China

Abu Dhabi: Abu Dhabi-based polymer manufacturer Borouge, which is developing the world’s largest integrated polyolefins site in Ruwais, Abu Dhabi, Friday said, it has signed an agreement to build a second production plant in China’s Guangzhou with a capacity to produce 105,000 tonnes of compounded polypropylene resins per annum.

Construction work on the plant is expected to be completed by the middle of 2012. The company did not divulge the investment outlay for the plant.

The announcement closely follows the inauguration of Borouge’s first compounding plant in Shanghai on April 20, 2010, and “presents the opportunity for the company to strengthen its presence in China,” the company said in a statement.

The new compounding plant will also benefit from the Application Research and Development Centre being established in Shanghai and the Innovation Centre being built in Abu Dhabi, UAE.

The move will help the UAE manufacturer reinforce its position as a major player in the petrochemical supply in the Asia-Pacific region that is driving the global demand for polymer products.

The new plant will help industries in Guangzhou, which has become the world’s largest source of household and industrial products, in meeting demand for plastic materials.

The move comes just two days after the company announced three major Engineering, Procurement and Construction (EPC) contracts to the tune of $2.6 billion to expand its production capacity.

These significant investments will expand the production capacity of the plant to 4.5 million tonnes per year (t/y) by 2013, making it the largest integrated polyolefins site in the world.