Borouge and Wanrong New Materials, a Subsidiary of Wanhua, Sign Cooperation Agreement for Polyethylene Integrated Project

Plastics Insight has learned that Borouge has signed a joint venture agreement with Wanhua New Materials, a subsidiary of Wanhua Chemical Group, to build a steam cracker and an integrated polyethylene production facility in Fujian, China. Borouge announced this on April 17 via a statement on the Abu Dhabi Securities Exchange.

Borouge announced that following the project cooperation agreement disclosed in July 2024, the company officially signed a joint venture agreement with Wanrong New Materials on April 17, with each party holding 50% of the equity, to jointly advance the planned cracker and polyethylene projects.

Borouge stated: "The joint venture agreement, which still requires regulatory approval, establishes the governance structure and financing model for the subsequent development phases of the project."

The project will leverage Borouge's Borstar polyolefins technology and its established local sales network, while partnering with experienced joint venture partners to create a growth project with strong development potential.

Borouge is a joint venture between Abu Dhabi National Oil Company (ADNOC) and Scandinavia's Petrochemicals (Borealis). It is part of the newly integrated Borouge Global Industries (BGI). The group was formed by merging ADNOC's and Austria's OMV's two major petrochemical joint ventures - Borouge and Borealis - along with the acquisition of Canadian Nova Chemicals. ADNOC's stake in the new BGI joint platform has been transferred to its investment division, XRG, with XRG and OMV each holding a 50% stake in BGI.

According to the initial announcement released by both parties in July 2024, the cooperation includes conducting a feasibility study for a new large-scale polyolefins integration project with an annual capacity of 1.6 million tons in Fuzhou City, Fujian Province, China. The construction timeline and potential total investment for the project have not been disclosed.