Borealis Expands XLPE Cable Production Capacity in Sweden

On October 10th, it was reported by Plastics Vision that Borealis recently announced two major investments to expand its cross-linked polyethylene (XLPE) production facilities in Stenungsund, Sweden. This expansion aims to enhance the production capacity of medium voltage, high voltage, and extra-high voltage (MV, HV, EHV) power cable insulation materials, which are critical for the integration of renewable energy into the grid and the modernization of power grids.

This investment fully leverages the decades of R&D experience, advanced laboratories, and specialized technical team advantages at the Stenungsund site, which has become an excellence center in the global XLPE materials field. These projects are part of the "Building for the Future" program by Nordic Chemicals and Borouge, which commits to investing €200 million to provide advanced materials needed for energy transition infrastructure.

Expand XLPE capacity

The first project will establish a new production line for the production of insulation-grade XLPE materials required for medium-voltage distribution network cables. Nordic Chemicals stated that this production line will produce a new generation of homopolymer XLPE grades, whose performance is comparable to the established performance of Nordic Chemicals' existing medium-voltage product portfolio. Additionally, through optimized production processes, it will have advantages in processing efficiency and capacity, as well as a lower carbon footprint.

The expansion will enhance the local supply capacity of XLPE materials within the EU region, ensuring supply chain continuity to meet the demand in the medium voltage market. The plant will also enable bulk delivery, further reducing the carbon footprint of the product's entire life cycle. The product is expected to be commercially available in the first quarter of 2027.

High-end XLPE materials for critical infrastructure

The second project will add new capacity for producing advanced XLPE grades suitable for high voltage and ultra-high voltage alternating current (AC) and direct current (DC) cable systems. Nordic Chemicals pointed out that these cable systems are crucial for strengthening the national grid and achieving large-scale power transmission, with high voltage direct current (HVDC) technology being particularly critical in the integration of offshore renewable energy and connecting to the national grid.

As part of the expansion, Borealis will further develop its "from monomer to final packaging" closed-loop controlled system to ensure that the products meet top cleanliness standards and satisfy the reliability requirements of critical energy infrastructure. The project is scheduled for completion in 2026, with commercialization in 2027.

“We continue to invest in innovation and optimize our product portfolio to meet the ever-changing demands of the energy industry,” said Craig Arnold, Executive Vice President of Borealis Polyolefins, Circular Economy Solutions and Basic Chemicals, in a statement. “The expansion of the Stenungsund facility enhances our ability to meet the growing demand for advanced insulation materials, supporting our customers in producing power cables that drive the energy transition.”

Earlier this year, Nordic Chemicals completed the upgrade of its semiconductor compound production facility in Antwerp, Belgium. Nordic Chemicals stated that combined with ongoing investments in Ruwais, UAE, these projects will double its capabilities in serving high-demand power cable applications by 2027, helping customers build the critical grid necessary for decarbonized energy systems.

The "Building for the Future" initiative is a comprehensive upgrade and expansion plan with a total budget of 200 million euros, covering XLPE and semiconductor assets at key bases in Europe. As the global energy industry transitions to renewable energy, this plan will help Borealis meet the growing market demand for high-performance cable insulation materials.

Assist Business Growth

Borealis has customers in more than 120 countries worldwide and employs approximately 6,200 people globally.

Nordic Chemical Group is committed to becoming an international enterprise serving global customers. Currently, it is advancing multiple growth projects, including the Borouge 4 project in the UAE, the Baystar project in the United States, and the construction of the propane dehydrogenation (PDH) plant in Kallo, Belgium.

In 2022, Baystar launched an ethane cracking facility in Port Arthur, Texas, with an annual capacity of 1 million tons, supplying ethylene feedstock to its three polyethylene (PE) production plants, thus becoming an integrated polyethylene manufacturer. Baystar was established in 2018 as a joint venture between Novealis and TotalEnergies, operating independently as an integrated producer and utilizing Borstar 3G technology licensed from Nordic Chemicals.