• Business

Borouge has agreed to expand its presence in East Africa.

by Swati Gupta

April 5, 2023 19

Borouge, a leading provider of innovative plastics solutions, has announced its plan to expand its presence in East Africa. The company has signed an agreement to establish a new polypropylene (PP) compounding facility in the region. The project is aimed at enhancing the company’s ability to serve customers in the East African market and strengthen its position as a key player in the global plastics industry.

The new facility, which will be located in Kenya, will be operated by Borouge’s local affiliate, Borouge Trading Company. The facility is expected to produce around 50,000 tonnes of PP compounds per year and will primarily serve customers in the automotive, appliance, and construction industries.

Speaking about the project, Ahmed Omar Abdulla, CEO of Borouge, said: “We are excited to expand our presence in East Africa and bring our innovative plastics solutions to the region. This new facility will enable us to better serve our customers in the region and support their growth and development.”

The East African market presents significant opportunities for Borouge. The region has a growing population and an increasing demand for high-quality plastics solutions. Borouge’s investment in the region is a testament to its commitment to the African continent and its belief in the potential of the region’s economy.

The new facility will also create job opportunities for the local community. The project is expected to create around 200 direct and indirect jobs during its construction phase and around 60 permanent jobs once it becomes operational. The facility will also contribute to the development of the local supply chain by sourcing raw materials and services locally.

The project is expected to be completed by the end of 2022, subject to regulatory approvals. Borouge’s investment in the region is part of its broader strategy to expand its global footprint and strengthen its position as a leading provider of innovative plastics solutions.

Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austria’s Borealis. The company is a leading provider of innovative, value-creating plastics solutions. It operates in more than 50 countries and has a global workforce of over 10,000 employees.

Borouge’s expansion into East Africa is part of its broader strategy to strengthen its presence in emerging markets. The company has a strong track record of investing in developing markets and supporting local communities. Its investments have helped to drive economic growth, create job opportunities, and promote sustainable development.

In recent years, Borouge has invested in a number of strategic projects in emerging markets. In 2020, the company announced plans to expand its petrochemicals complex in Ruwais, Abu Dhabi, to increase its production capacity by 25%. The expansion is aimed at meeting the growing demand for plastics solutions in the Asia-Pacific region.

Borouge has also invested in a number of other projects in the Middle East and Asia, including a new polyethylene plant in China and a new logistics hub in Singapore. These investments are aimed at enhancing the company’s ability to serve customers in key markets and support its long-term growth strategy.

Borouge’s commitment to sustainability is another key driver of its expansion into emerging markets. The company is committed to promoting sustainable development and reducing its environmental impact. It has implemented a range of initiatives to reduce its carbon footprint, conserve resources, and promote circularity.

In 2020, Borouge announced plans to invest in a new recycling plant in Abu Dhabi to convert plastic waste into usable products. The plant is expected to be operational by 2024 and will have the capacity to convert around 70,000 tonnes of plastic waste per year.

Borouge’s expansion into East Africa is a significant milestone for the company and a positive development for the region.