Abu Dhabi's XRG, the global energy investment arm of Adnoc, and Austrian company OMV have finalised the process to form Borouge Group International, in a move that is expected to help the UAE become an increasingly important player in the global chemicals sector.
Adnoc and OMV agreed on terms last year to merge their polyolefins businesses, Borouge and Borealis, to create a $60 billion global company. Borouge International is now the world's fourth-largest polyolefins producer with premium products, XRG said in a statement on Tuesday.
Polyolefins, including polyethylene and polypropylene, are versatile, making them among the most used type of plastics globally. They represent nearly 50 per cent plastics consumption in Europe, according to the Plastics Europe trade association.
Borouge International has access to a global production capacity of 13.6 million tonnes a year, with near-term growth projects including the 1.4 million tonnes Borouge 4 site. Adnoc currently owns 70 per cent of that, with the other 30 per cent owned by OMV.
Borouge International, which also acquired Canada's Nova Chemicals, is expected to help drive the UAE's economic diversification plans and reinforce its role as a “trusted leader in the global energy and chemicals landscape”, said Dr Sultan Al Jaber, executive chairman of XRG, and managing director and group chief executive of Adnoc.
The company is “exceptionally positioned to meet growing global demand for advanced materials … creating a world-scale polyolefins leader with differentiated technology, a resilient business model and access to high-growth markets”, said Dr Al Jaber, who is also UAE Minister of Industry and Advanced Technology.
The company has its headquarters in Austria and is tax domiciled in the country, with regional headquarters in the UAE.
Borouge International will operate corporate hubs across North America, Europe and Asia, with innovation centres in the UAE, Austria, Canada, Finland and Sweden, XRG said.
XRG was launched in November 2024 as an international lower-carbon energy and chemicals investment company, and with an enterprise value of more than $150 billion.
It is focused on scaleable energy solutions to help support artificial intelligence and industry. The company has been expanding its operations globally and plans to double its asset value over the next decade, capitalising on energy transition, AI advances and the rise of emerging economies.
In January, it increased its stake by 7.6 per cent in the Rio Grande liquefied natural gas project in the US. It also signed a deal with Argentina’s YPF and Italy’s Eni to develop an integrated LNG project in the South American nation, and acquired a stake in Azerbaijan's Southern Gas Corridor company.
Borouge International said it has a “superior resilient margin profile” and more than $500 million in identified earnings before interest, taxes, depreciation and amortisation (Ebitda) run-rate per annum, with 75 per cent projected to be realised within its first three years.
“The company’s global reach, combined with long-term shareholders and a robust capital structure, will deliver resilience throughout the business cycle and an enhanced ability to drive consistent performance and sustainable value for shareholders,” XRG said.
