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Borouge Sets Up Marketing Firm in China

ABU DHABI - Abu Dhabi Polymers Company, or Borouge, has setup a marketing firm in China’s southern Guangzhou province to expand its business in world’s largest market. The new company is part of Borouge’s plans to expand its business in China.

Last year, Abu Dhabi Polymers formed Borouge Sales and Marketing Shanghai Co Ltd and the Borouge Compounding Shanghai Co.

“With the relative strength of the economy, China will soon become the largest consumption market for polyolefin’s globally,” said Rashed Saud Al Shamsi, Chairman of the Board of Borouge Pte, Borouge’s Marketing Company, at the inauguration last week.

“As such we will continue to expand our investments in China and support the growth of the market. The establishment of a sales and marketing company in Guangzhou is the next phase of our expansion and it reflects our ongoing commitment to China,” he said.

Supported by a Guangzhou-based logistics hub capable of supplying approximately 246,000 metric tonnes of value-added polyethylene and polypropylene annually to its customers in the region, the new company will optimise the service that Borouge provides and further develop the company’s growth in the region.

“We are already present in Beijing, Shanghai and Hong Kong, and now with a company in Guangzhou, we will be better poised to service the Southern Chinese market,” said William Yau, Chief Executive Officer of Borouge Pte.

“Together with our two new logistics hubs and manufacturing facilities in China, we are fast becoming a recognised supplier in the packaging and automotive markets in addition to our strong position in the infrastructure markets.”

Capacity Boost

As a leading provider of innovative plastic solutions in the infrastructure, automotive and advanced packaging markets, Borouge is tripling the capacity of its plant in Abu Dhabi in 2010 to two million tonnes per year and adding polypropylene to its manufacturing portfolio.

The new compounding manufacturing unit in Shanghai will supply up to 50,000 tonnes of compounded resins annually to Borouge’s automotive and appliances customers in China.

Besides enhancing its Borstar technology-based polypropylene and polyethylene offer in 2010, Borouge has initiated a further expansion of its plant in Abu Dhabi to increase the total capacity to 4.5 million tonnes per year.

This major expansion, to be completed at the end of 2013, will include the production of low density polyethylene or LDPE production capacity to meet the specific needs of the rapidly growing wire and cable infrastructure market.

Borouge is joint-venture between Abu Dhabi National Oil Company, or Adnoc, one of the world’s major oil companies, and Austrian based Borealis, a leading provider of chemical and plastics solutions. Borouge distributes Borealis products in China.

haseebhaider@khaleejtimes.com