February 8, 2023

Borouge secures two contracts worth $15m from UAE manufacturers

Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, has secured two contracts worth Dh55 million ($15 million) to supply polyolefins to UAE cable maker Ducab and Union Pipes Industry, its partner-customers. The companies will use the polyolefins to produce energy and infrastructure applications needed to construct the Borouge 4 project in Ruwais, Borouge said on Tuesday. Ducab will produce low and medium-voltage cables to power Borouge 4 using Borouge’s energy solutions while UPI will use Borouge’s “Made in UAE” solutions to produce pressure pipes for the cooling and public sanitation system of Borouge 4.

“Our latest agreements with Ducab and UPI signal the continued progress of the Borouge 4 project and are a testament to our commitment to the UAE’s in-country value programme — providing locally sourced and ‘Made in UAE’ solutions that shape a strategic project of this scale,” said Borouge chief executive Hazeem Al Suwaidi.

“We look forward to building on our track record of success and unlocking long-term value through the aggressive pursuit of revenue growth and cost optimisation.”

Hazeem Al Suwaidi, chief executive of Borouge. Photo: Borouge

Established in 1998, Borouge is a petrochemical company that employs more than 3,000 people and serves customers in more than 50 countries across Asia, the Middle East and Africa.

It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.

Adnoc owns 54 per cent of the company while Borealis controls 36 per cent.

Last year, the company raised $2 billion through an initial public offering and was listed on the Abu Dhabi Securities Exchange.

For the first nine months of 2022, Borouge reaped about $5 billion in revenue, a 14 per cent increase from the same period a year earlier.

Borouge’s polypropylene sales volumes rose by about 15 per cent during the period. Polypropylene is a thermoplastic material used in everything from plastic packaging to car parts and textiles.

“Building strategic partnerships with national champions in the industrial sector is aligned with the goal of the Operation 300bn initiative, creates in-country value and boosts economic competitiveness,” said Ducab’s group chief executive Mohammad Almutawa.

The UAE, the Arab world’s second-largest economy, plans to increase the industrial sector’s contribution to the country’s gross domestic product to Dh300 billion by 2031, from Dh133 billion in 2021, as part of the Operation 300bn strategy.

Ducab is owned by Abu Dhabi holding company ADQ and the Investment Corporation of Dubai.

It exports its products, which include cables and metal, to different countries in the GCC region, Europe, North and South America, as well as to countries such as India and Australia.

In November, Borouge also signed a preliminary agreement with the Abu Dhabi Medical Devices Company to supply plastics and develop the emirate’s medical devices sector.

 

 

 

 

 

The National