OMV and Borealis extend partnership to another 11 years

Austrian oil and gas company OMV and chemical and plastics company Borealis have extended their petrochemical partnership for another 11 years, from 2018 until 2028. OMV and Borealis have been partners since 1998 at their sites in Schwechat (Lower Austria) and Burghausen (Bavaria). This cooperation is a key component of the petrochemical integration of OMV’s refineries.

Manfred Leitner, OMV Executive Board member, says, “Supplying raw materials for the plastics industry is a key pillar of OMV’s Downstream business. Extending the agreements allows us to continue the success of our profitable partnership with Borealis. In addition, OMV and Borealis are playing a pivotal role in securing production and jobs in Schwechat and Burghausen.”

“The extension of our cooperation renews the foundation for competitive polymer production at our sites in Schwechat and Burghausen for another 11 years,” said Markku Korvenranta, Borealis Board Member. “This also makes an important contribution to securing Europe’s industrial capabilities”.

Supplying monomers – ethylene and propylene – remains at the heart of the agreement. These are essential products for the plastics industry and are produced in the OMV refineries Schwechat and Burghausen. They are then processed in the Borealis plants to create polyethylene (PE) and polypropylene (PP) for Borealis and its joint venture Borouge, which are the second-largest suppliers worldwide.

Borealis is owned by the International Petroleum Investment Company (IPIC) from Abu Dhabi (64%) and by OMV Aktiengesellschaft (36%).

With group sales of EUR36 billion and a workforce of around 25,500 employees in 2014, OMV is one of Austria’s largest listed industrial companies