Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, has signed a new agreement to expand its footprint in East Africa and boost sales of its products.
The company signed the distribution agreement with Somochem, one of the biggest polyolefin distributors in East Africa, Borouge said on Wednesday.
The development comes on the back of Borouge’s significant growth in market share in the region.
Last year, the company increased its sales of advanced packaging solutions in East Africa to Dh496 million ($135 million) and sales of energy and infrastructure solutions to Dh184 million.
Established in 1998, Borouge is a petrochemical company with a 3,100-plus workforce, serving customers in more than 50 countries across Asia, the Middle East and Africa.
It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.
In May last year, Borouge raised $2 billion through an initial public offering and was listed on the Abu Dhabi Securities Exchange.
After its listing, Borouge was included in the FTSE Global Equity Index Series, which is used by investors globally to guide asset-allocation decisions and support portfolio construction.
“We are sharpening our focus on the growing demand in East Africa, now a major strategic market for Borouge,” Khalfan Al Muhairi, senior vice president for MEAE region at Borouge said.
“We identified a gap in the region for multiple premium solutions, enabling us to unlock opportunities to grow our market share over the next five years.
Its portfolio of products includes polythene and polypropylene — the two most common forms of polymer — which are used in a variety of products including pipes, fittings, wires and cables as well as in products that have automotive, sustainable packaging, agricultural and medical applications.
Borouge is bullish on East Africa and aims to capitalise on the new opportunities in the region amid rapid economic growth.
Economic growth in East Africa is projected to reach 5 per cent in 2023 and 5.4 per cent in 2024, it said citing data from the African Development Bank.
“Market demand has been driven by the rapid and substantial infrastructure investment, healthcare improvements, rising living standards and urbanisation,” Borouge said.
The company plans to launch new grades of advanced packaging solutions in East Africa, to capitalise on the growing demand for premium products.
In February, Borouge reported an 8 per cent rise in its 2022 revenue on higher sales volumes. Revenue for the 12-month period ending in December climbed to $6.72 billion, from $6.22 billion in 2021.
Total sales volume grew by about 15 per cent as Borouge increased production from its fifth polypropylene unit, which raised the company’s production capacity by 500,000 tonnes a year.
Polypropylene, Borouge's main product, is a thermoplastic material used in products including plastic packaging, car parts and textiles.
