Borouge, a leading provider of innovative plastics solutions, is projecting significant savings through its Value Enhancement Programme. Khalfan AlMuhairi, Senior Vice President of Region EMEA at Borouge, revealed that the company anticipates achieving $400 million in savings by the end of 2023, according to the news source, Emirates news agency. The Value Enhancement Programme, which commenced in late 2022, has already yielded over $100 million in savings by the close of the first quarter of 2023.
AlMuhairi expressed enthusiasm about the potential benefits of the Value Enhancement Programme, stating that it will support Borouge’s growth plans by boosting revenues and enhancing the company’s competitive position. These enhancements come at a time when the demand for Borouge’s products is expected to rise over the next five years, driven by continued government investments in infrastructure solutions. AlMuhairi emphasized that the company’s diversified product mix has contributed to its resilience and ability to navigate the cyclical nature of the business.
Highlighting Borouge’s commitment to the circular economy, AlMuhairi emphasized the importance of mono-material flexible packaging solutions that are fully recyclable and sustainable. He acknowledged the increasing adoption of responsible practices and circular economy principles among brand owners and stressed the need for such packaging solutions to meet market demands. AlMuhairi emphasized Borouge’s collaboration with value chain partners, including Original Equipment Manufacturers (OEMs) and converters, to develop polyethylene and polypropylene mono-material flexible packaging solutions.
In addition to packaging solutions, AlMuhairi discussed Borouge’s innovative contributions to other sectors. The company’s polymer wires, cable coatings, and insulation materials improve the reliability of power grids, reduce power wastage, and enable the efficient transport of energy from renewable sources over longer distances. Furthermore, Borouge’s materials for pipes find applications in various industries such as water and gas supply, wastewater and sewage disposal, plumbing and heating, and oil and gas. AlMuhairi highlighted that Borouge’s pipe solutions offer corrosion resistance, durability, and reliability, thereby enhancing the sustainability and efficiency of pipe networks while contributing to energy savings.
AlMuhairi underscored the significance of Borouge’s Innovation Centre in Abu Dhabi in achieving the company’s targets for increasing sales volumes of infrastructure solutions and supporting the circular economy. He emphasized the Middle East and Africa region’s importance as a growth engine for Borouge, representing approximately one-third of the company’s business by volume. Moreover, AlMuhairi projected that the target markets of Asia, the Middle East, and Africa would account for around 86 percent of global polyolefins demand growth from 2022 to 2026.
With ongoing capacity expansions in the UAE, Borouge is well-positioned to provide a timely and reliable supply to customers in these regions. AlMuhairi highlighted the significance of Borouge’s fifth polypropylene unit, which commenced operations in early 2022, as it significantly increased production capacity and positioned the company as one of the top five polyolefin producers in the Asia Pacific and Middle East regions.
AlMuhairi discussed the extensive opportunities in the infrastructure market, which require Borouge’s products for pipes, wires, and cables. He noted that the proportion of polyolefin sales to the infrastructure solutions market increased to 46 percent in the first quarter of 2023. AlMuhairi also emphasized the demand for Borouge’s unique grades of polyethylene materials (PE100), which enable the production of large-diameter and thick-wall polyethylene pipes. These pipes address sustainability challenges in the infrastructure market by replacing conventional materials with advanced, corrosion-free, and 100 percent recyclable polymer materials.
Borouge has been strengthening its focus on the growing demand in East Africa, achieving sales growth of infrastructure solutions in the region over the past five years. AlMuhairi highlighted the use of Borouge’s optimal materials to develop durable and reliable pipelines for various ongoing development projects across the Middle East and Africa.
Asia Pacific remains Borouge’s largest sales market, contributing 65 percent of total revenue in 2022. AlMuhairi outlined the company’s growth plans within Asia, which include sustainable applications in infrastructure, energy, advanced packaging, mobility, agriculture, and healthcare. He emphasized Borouge’s strategy in promoting circularity and identified China and India as critical markets for the company. Borouge has expanded its presence in China over the past 25 years, with a significant portion of its business derived from infrastructure solutions. In India, the company serves multiple industrial sectors and collaborates with local partners on advanced packaging solutions and efficient solutions for the agriculture industry.
AlMuhairi expressed optimism about the future demand for polyolefins in high-growth markets, which is expected to outstrip supply and GDP growth. He also highlighted the growing opportunities in the healthcare sector, as emerging economies seek better healthcare and improved hygiene, leading to increased demand for advanced polyolefin grades for medical appliances, devices, and protective equipment.
In conclusion, Borouge’s Value Enhancement Programme is expected to yield substantial savings for the company, supporting its growth plans and improving its competitive position. The company’s focus on the circular economy and development of mono-material flexible packaging solutions aligns with the increasing demand for responsible practices. Borouge’s innovative solutions in power grids, pipes, and other sectors contribute to sustainability and energy efficiency. With a strong presence in key markets and a commitment to collaboration and growth, Borouge is well-positioned to capitalize on the growing demand for sustainable solutions in the Asia Pacific, Middle East, and Africa regions.
Source: Emirates News Agency