BOROUGE a leading provider of innovative, value creating plastics solutions, has formally signed contracts valued at approximately $3.1 billion for Borouge 2, the major expansion project at the company’s production facilities in Ruwais, Abu Dhabi.

The contracts were signed by Harri Bucht, CEO of Borouge production company, Fabrizio Di Amato, chairman of Tecnimont of Italy, Juan Ilado Arburua, vice chairman and CEO of Tecnicas Reunidas of Spain.The contract with Tecnimont, worth approximately $1.855 billion, is for the construction of three new Borstar technology polyolefins units and associated material handling facilities, laboratory facilities and marine works. This is the largest supplier contract Borouge has signed since its inception as a company in 1998 and is awarded on a lump sum turnkey basis.
The contract with Tecnicas Reunidas, worth an estimated value of $1.234 billion, is for the construction of the offsite and utility facilities for the expanded plant, and is awarded on a convertible lump sum turnkey basis.
Preliminary work has begun immediately and both contracts are scheduled to be completed in 2010.
Harri Bucht, chief executive officer of the Borouge production company, commented: “Today marks a major step forward in our expansion plans and signing these contracts lays down a path to tripling our production capacity by 2010. This is a major project that demonstrates the commitment and ambition not just of Borouge but of the petrochemical industry in the Gulf. We look forward to working closely with our new partners to make it a reality.”
The Borouge 2 project will increase Borouge’s annual production capacity to two million tonnes of polyolefins, including for the first time, polypropylene.
Harald Hammer, chief executive officer of the Borouge marketing company commented: “Market acceptance of the Borstar range since Borouge’s inception in 1998 has been exceptional. These contracts increase the momentum of the Borouge 2 expansion bringing additional Borstar Enhanced Polyethylene and now Borstar Enhanced Polypropylene to customers across the Middle East and Asia-Pacific.
By quadrupling the number of grades we will serve our innovative customers with complete solution concepts in high performance applications.”
In January 2007, Borouge began the first stage of the construction process, when it formally signed a $1.3 billion contract with Linde Engineering/CCC for the construction of a new ethylene cracker. The contract was awarded to Linde/CCC on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010.
Meanwhile, Borouge and Borealis have launched Water for the World in the Middle East - the first regional launch of a global programme to address the challenge of providing clean and safe water and sanitation to areas in need.It is a first for the global plastics industry.
More than 1 billion people around the world are without sustainable access to fresh water and over 2 billion lack basic sanitation. Water for the World leverages the expertise that
Borouge and Borealis have built in the Middle East, Asia and in Europe, and fosters local knowledge and partnerships throughout the value chain to deliver sustainable solutions for the availability of safe water and sanitation.
In the long term, Water for the World aims to build local knowledge and partnerships to find lasting solutions to the water availability issue. This includes a broad range of value adding activities from supporting community projects led by Water and Sanitation for the
Urban Poor (WSUP) to engaging stakeholders in professional training, education and promotion of best practices as with the Gulf Plastics Pipe Academy initiated by Borouge in Abu Dhabi.
In addition, Borouge will spearhead the regional development of the Global Water Tool, a water optimisation project introduced in 2007 by the World Business Council for Sustainable Development.
 Initial assessments of Borouge's own Middle East operations indicate positive results in water efficiency.