Borouge, in partnership with ADNOC and Borealis, has signed a Project Collaboration Agreement (PCA) with China’s Wanhua Chemical and its subsidiary Wanrong New Materials (Fujian) to explore the feasibility of establishing a speciality polyolefins complex in Fuzhou, Fujian Province. This proposed complex aims to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins, utilizing Borealis’ Borstar® technology and Borouge’s sales network.
The consortium, which will hold a 50:50 shareholding ratio with Wanrong New Materials (Fujian), intends to use 100% zero-carbon electricity for the complex, highlighting its commitment to sustainability. His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Liao Zengtai, Chairman of Wanhua Chemical, were present at the signing ceremony in Beijing. Hazeem Sultan Al Suwaidi, CEO of Borouge, and Kou Guangwu, CEO of Wanhua Chemical Group, signed the agreement on behalf of their respective companies.
Hazeem Sultan Al Suwaidi stated, “This strategic growth initiative builds on the robust economic ties between the UAE and China, and offers the potential to create value for Borouge shareholders by accelerating our expansion in China. The proposed complex will leverage the strengths of our partners and majority shareholders, who bring a capacity to deploy significant capital, world-leading technology, innovation and technical expertise, as well as extensive logistics and customer networks. We look forward to collaborating with our partners to swiftly deliver a sustainable feasibility study that will support our commitment to continue reducing our emissions.”
The project aims to bolster Borouge’s position in the Asian market, particularly in China, which is the largest and fastest-growing polyolefins market globally. The consortium will benefit from Borouge and Borealis’ expertise and synergies in technology, supply chain, and logistics, along with Wanhua Chemical’s established network in China. The initiative underscores the partners’ dedication to achieving net-zero emissions and developing products that support a circular economy.
The feasibility study will also examine the use of artificial intelligence (AI) to support automated plant operations. Borouge, which derives almost 30% of its revenue from China, aims to reinforce its presence in the country. The company operates an application centre and a compounding centre in Shanghai and supplies premium materials to various sectors, including infrastructure, renewable energy, electric vehicles, and advanced packaging.