Borouge’s China push continues with new Guangzhou-based unit

Citing its belief that China will soon become the largest consumer of polyolefins globally and its hopes to feed that demand, Borouge has incorporated a China-based branch, Borouge Sales and Marketing Co. Ltd., in Guangzhou. The Abu Dhabi National Oil Co. (ADNOC) and Borealis joint venture said the new business will be supported by a Guangzhou-based logistics hub that will be up and running in mid-2010, with the capability to supply approximately 246,000 tons/yr of polyethylene and polypropylene to the region. In addition to the Guangzhou site, Borouge announced in July that its logistics and distribution hubs in Shanghai and Singapore will have a distribution volumes of 600,000 and 330,000 tons/yr, respectively.

William Yau, CEO of Borouge Pte., said the company is already present in Beijing, Shanghai, and Hong Kong, and that the new company in Guangzhou will allow it to better serve the southern Chinese market. In addition to two new logistics hubs, a planned compounding site, and manufacturing facilities in China, the company will also establish an Application Centre at its Shanghai manufacturing operation. Planned to open at the end of 2010, the new center will handle research and development and conduct product performance reviews, with a research focus on automotive and appliance applications. In the past, the company has said bumpers, body panels, dashboards, and door claddings are of particular interest in the automotive segment. By 2020, China’s demand for automobiles is projected to clear 20 million units, according to China Automobile News.

As previously reported, Borouge is tripling the capacity of its Abu Dhabi in the United Arab Emirates in 2010 to 2 million tons/yr and adding polypropylene to its manufacturing portfolio. The compounding unit in Shanghai, which opens this year, will supply up to 50,000 tons of compounded resins annually to Borouge's automotive and appliance customers in China. As part of the Abu Dhabi expansion, which will increase the site’s total capacity to 4.5 million tons/yr, Borouge is also adding the production of low-density polyethylene (LDPE) to target the rapidly growing wire and cable infrastructure market. In a 2008 report, The Freedonia Group said demand for insulated wire and cable in China would grow 13% annually through 2011, driven by demand in the power grid, telecommunication, and building construction sectors. —Tony Deligio