Borouge supplies materials worth $26.5m to mega projects in MEA

Abu Dhabi’s Borouge is supplying sustainable polyethylene materials worth $26.5m (Dhs120m) that are being used in several development projects across the Middle East and Africa regions, according to WAM.

The company’s contribution to these mega projects is in collaboration with local manufacturing firms that are using its products to build durable and reliable pipelines for various ongoing development projects in Egypt, Oman and Tanzania.

The pipes used in these projects were made from various grades of Borouge BorSafe PE100 polyethylene materials, enabled by advanced Borstar technology, which significantly contribute to lowering installation costs, operational costs and maintenance costs for customers and end-users.

“Selecting our materials for such key projects reflects the competitive advantage of Borouge’s materials and the company’s ability to develop sustainable tailored solutions that fit the needs of all types of development projects. We will continue our contribution in shaping the region’s most prominent projects with our infrastructure solutions that are reliable and enable modern living,” said Khalfan AlMuhairi, senior vice president of region MEAE at Borouge.

The petrochemicals company’s materials also contribute to reducing carbon emissions generated during the manufacturing process of the pipes and their operational lifespan. Pipes made of BorSafe material can be recycled at the end of their lifecycle.

#Borouge supplies materials worth AED 120 million for mega projects in the MENA region. Pipes made of Borouge materials are highly sustainable & recyclable at the end of the 50-year life cycle, contributing to reducing carbon emissions generated during the manufacturing process.

— Borouge (@Borouge) March 28, 2023

Major ongoing projects that are using Abu Dhabi-based company’s materials include Al Mudhaibi Water Supply Project in Oman, the Toshka Project in Egypt and the Dar Es Salaam Water and Sewage Project in Tanzania.

Borouge’s growth strategy

The company reported an 8 per cent increase in full-year revenues to $6.72bn in 2022 compared to $6.22bn from a year driven by higher sales volumes. Its total sales volume surged by about 15 per cent as it increased production from its fifth polypropylene unit (PP5), which raised the company’s production capacity by 500,000 tonnes a year.

Read: Abu Dhabi-based Borouge reports $1.4bn net profit in 2022

The Abu Dhabi-based firm’s annual net profit attributable to the owners plunged by as much as 8 per cent to $1.4bn in 2022 from $1.51bn a year earlier.

Borouge’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) last year sunk by around 3 per cent to $2.65bn from 2021, on higher costs. The Abu Dhabi-based petchem giant also reiterated its commitment to pay $975m in post initial public offering (IPO) dividends to shareholders for 2022, of which $325m has already been paid and at least $1.3bn for 2023.

The company forecasted stable demand growth in its core Asia Pacific and Middle East markets, where economic growth rates are ahead of developed economies. Its differentiated product portfolio, enabled by Borstar technology, its innovation capabilities and its integrated go-to-market approach, result in a sustained and strong market position.

It also secured two contracts worth Dhs55m to supply polyolefins to UAE cable maker Ducab and Union Pipes Industry (UPI), its partner customers.

Read: Petrochem company Borouge wins two contracts worth $15m from UAE manufacturers

Ducab is producing low-voltage and medium-voltage cables to power Borouge 4 using the petrochemical firm’s energy solutions while UPI is leveraging its ‘Made in UAE’ solutions to produce pressure pipes for the cooling and public sanitation system of Borouge 4.​

Borouge has a presence in 49 countries. Abu Dhabi National Oil Company and Austria’s Borealis own a 54 per cent and 36 per cent stake in the company, respectively. The petrochemical major raised $2bn in an IPO on the Abu Dhabi Securities Exchange in June 2022.