UAE sees $3.5bn deal to build world’s largest polyolefin plastics plant

    13 Dec 2021

    The owners of the Borouge polyolefin plant in the UAE have signed a $3.5 billion contract to extend the site, which will make it the biggest plastics plant of its kind in the world, Arab News reports.

    Italian oil and gas engineer Maire Tecnimont has been awarded the contract to work on the Borouge 4 facility, which will be built at the existing complex in Ruwais, the company said in a statement.

    A joint venture between the Abu Dhabi National Oil Company and Austrian chemicals group Borealis, the new plant will boost production to 6.4 million tons of polyolefin when work is complete in 2025.

    Polyolefin is used to make various products such as industrial-grade pipes, cables, films, and personal protective equipment.

    Maire Tecnimont has signed a series of three engineering, procurement, and construction contracts with the Abu Dhabi Polymers Company.

    These include tuilding two polyethylene units with a capacity of 700,000 tons per year each.

    The Italian business said the project will also include a range of engineering and construction work, equipment and material supply, as well as “commissioning and startup assistance.”

    Maire Tecnimont Group CEO Pierroberto Folgiero said: “Our portfolio of digital solutions combined with our technology-driven process expertise will ensure the highest plant assets’ optimization and the best environmentally performing standards.”

    Last month, ADNOC and Borealis signed a $6.2 billion deal to extend the Borouge complex.

    The joint venture partners also said they would prepare studies for a carbon capture unit to cut CO2 emissions by 80 percent.

    The unit may be in operation in time for the start of Borouge 4.

    The first Borouge plant was commissioned in 2001 and was followed by Borouge 2 in 2010 and Borouge 3 in 2014.

    The complex produces polypropylene, polyethylene as well as polyolefin plastic.


    Borouge states that it is committed to sustainability principles and is a signatory of the chemical industry’s Responsible Care® Global Charter. Together with Borealis, Borouge proactively addresses the world’s water and sanitation challenges through the Water for the World™ initiative.

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