ABU DHABI, 5 June 2007 — Borouge, provider of innovative, value creating plastics solutions, yesterday signed contracts valued at approximately $3.1 billion for Borouge 2, the major expansion project at the company’s production facilities in Ruwais in Abu Dhabi.
Project expansion work will begin immediately and contracts are scheduled to be completed in 2010.
At a ceremony held at Borouge’s headquarters in Abu Dhabi, contracts were signed by Harri Bucht, CEO of Borouge Production Company, Fabrizio Di Amato, chairman of Tecnimont S.pA of Italy and Juan lIado Arburua, vice chairman and CEO of Tecnicas Reunidas SA of Spain.
“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.”
The Borouge 2 project will increase its annual production capacity to two million tons of polyolefins, including polypropylene, for the first time, Bucht said.
He told reporters that the capacity will increase from 600 tons to 2 million tons a year. He disclosed that Borouge 3 is in the cards and a melamine plant is under study.
He added that Bourge’s total investment were valued at $ 5.5 billion with Borouge 2 taking $ 4.3 billion.
The contract with Tecnimont S.pA, 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.
The contract with Tecnicas Reunidas SA, worth an estimated value of $1.234 billion, is for the construction of the offsite and utility facilities for the expanded plant.