Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, has signed a preliminary agreement with the Abu Dhabi Medical Devices Company (ADMD) to supply plastics and develop the emirate’s medical devices sector.
As part of the agreement, Borouge will supply polyolefin — a thermoplastic material used widely in medical devices and packaging — to ADMD.
The use of plastics in health care application has increased owing to spiralling health care demand. The new generation of medical devices is developed using polyolefin instead of traditional materials such as glass, paper, cardboard or metal.
“We are pleased to be part of this important partnership through which we will supply ADMD with our solutions, reinforcing our leading position as the polyolefin solution provider of choice for the UAE healthcare sector,” Khalfan Al Muhairi, senior vice president regional MEAE, Borouge, said in a statement on Tuesday.
ADMD, which produces a range of medical devices, is the only manufacturer of auto-disable syringes in the Middle East and Africa, producing more than 400 million units annually.
The partnership, driven by the Ministry of Industry and Advanced Technoloy, is another “significant” step for Borouge towards supporting the UAE healthcare sector, said the company.
The global medical plastics market, which was valued at $46.1 billion in 2021, is expected to grow annually at a rate of 7.5 per cent from 2022 to 2030, according to Grand View Research.
Last month, the UAE announced the signing of industrial deals worth Dh260 million ($70.79m) between major pharmaceutical and medical companies to manufacture medical equipment locally.
Under the partnerships, PureHealth, one of the largest healthcare providers in the UAE, will work with ADMD, the Abu Dhabi Ports Group and Borouge, to establish a Dh110m medical supplies production line in Abu Dhabi.
Borouge will provide raw materials while the Abu Dhabi Ports Group will provide industrial land in ICAD 1 for the production of medical syringes, administration devices and blood collection tubes.
“Our specialised range of healthcare solutions ensures that the customer’s healthcare business is carried out in a reliable way with respect to the needs of the industry,” Mr Al Muhairi said.
“Going beyond medical compliance documentation and technical services, we gather insights from the value chain partners and incorporate these into our processes, from product conception to production, procurement, support and distribution,” he added.
Borouge reported a 14 per cent rise in revenue for the first nine months of 2022 from the same period a year earlier on higher sales of polypropylene, a key petrochemical.
Earlier this year, the company successfully started operations at its fifth polypropylene unit (PP5) in Ruwais as it continues to expand its production capacity.
The unit will help the UAE to meet the growing global demand for products in the recyclable advanced packaging, infrastructure and industrial sectors.