Expansions: Borouge, Adnoc, Borealis, Wanhua to build polyolefins plant in China; Trelleborg expands engineered coated fabrics business in the US

A consortium comprising Abu Dhabi-based materials firm Borouge, Abu Dhabi National Oil Company (Adnoc) and Austrian chemical firm Borealis have tied up with China’s Wanhua Chemical and Wanrong New Materials, a subsidiary controlled by Wanhua Chemical Group, to study the feasibility of building a 1.6 million tonnes/year specialty polyolefins complex at Fuzhou, Fujian Province, China.

Borealis said its Borstar polyolefins technology would be at the core of the project, “enabling the development of products that are well suited to drive the transition to a circular economy for plastics.”

The consortium intends to establish a Sino-foreign joint venture with Wanrong New Materials (Fujian), with a shareholding ratio of 50:50 respectively, subject to customary regulatory approvals.

Asia serves as a hub for polyolefin demand, with China accounting for 40% of global consumption. Borouge has established a strong presence in China, operating an application centre and a compounding centre in Shanghai and in 2023, almost 30% of Borouge’s revenue was derived from China, underscoring the company’s commitment to drive strong growth in the country. Borouge supplies premium materials across a wide range of customer segments, including infrastructure, renewable energy, electric vehicles, and advanced packaging.

Borouge is a joint venture between Borealis and Adnoc, which owns 25% of Borealis, with the balance owned by Austrian energy company OMV.

Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “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.”

This strategic initiative will reinforce Borouge’s premium positioning in the fast-growing market for high-quality differentiated materials and represents a significant step in its international growth ambitions. As part of the consortium, Borouge is aiming to enhance its presence in China, the world’s single largest and fastest growing polyolefins market, where petrochemical self-sufficiency is being prioritised and further expanding the company’s strong market position.

The proposed project will leverage Borouge and Borealis’ industry and commercial expertise, as well as technology, supply-chain and logistics synergies across the Adnoc Group. It will also benefit from Wanhua Chemical’s strong track record and network in the Chinese market, along with China’s competitive construction and energy costs, as well as its accelerated execution timelines. The partners are committed to achieving net zero emissions and developing products that promote the circular economy and intend to power the planned specialty polyolefins complex with 100% zero-carbon electricity, supported by the local government.

The final structure of the project and financial commitments will be established following the completion of the feasibility study, which will also explore artificial intelligence (AI) solutions to support automated plant operations.

In other news, Trelleborg Group has decided to invest in a new production facility to expand its business for engineered coated fabrics in Rutherfordton, North Carolina, US. The establishment will primarily aim to strengthen Trelleborg's leading positions in aircraft escape slides, water infrastructure, and advanced materials for healthcare and outdoor products.

“The investment creates opportunities for continued growth in our globally leading business in engineered coated fabrics, which is part of the Trelleborg Industrial Solutions business area. Through this expansion, we are adding new technology, production and development capacity in a state-of-the-art facility, strengthening our role as a long-term partner to our customers," says Peter Nilsson, President/CEO of Trelleborg Group.

The new building will be LEED-certified, and operations will be carbon-neutral. The investment also enables increased use of bio-based polymers and recycled raw materials. In total, Trelleborg is investing more than SEK 300 million in the expanded facility. Groundbreaking is scheduled for the fourth quarter of this year, with production starting in early 2026.

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