Borouge, a leading provider of innovative, value creating plastics solutions, has signed $3.1 billion worth of contracts for its Borouge 2 expansion project at the company’s production facilities in Ruwais, Abu Dhabi.

The contract with Tecnimont, worth $1.85 billion, will involve the construction of three new Borstar technology polyolefins units and associated material handling facilities, laboratory facilities and marine works. This is the largest supplier contract Borouge has signed since its inception as a company in 1998 and is awarded on a lump sum turnkey basis.
The $1.23 billion contract with Tecnicas Reunidas will involve the construction of offsite and utility facilities for the expanded plant, and is awarded on a convertible lump sum turnkey basis.
Preliminary work will begin immediately and both contracts are scheduled to be completed in 2010.
“The signing marks a major step forward in our expansion plans and lays down the path to triple our production capacity by 2010,” says Harri Bucht, chief executive officer of the Borouge production company.”
The Borouge 2 project will increase Borouge’s annual production capacity to two million tonnes of polyolefins, including polypropylene.
Last January, Borouge began the first stage of the construction process, when it formally signed a $1.3 billion contract with Linde Engineering/ CCC for the construction of a new ethylene cracker.
The contract was awarded to Linde/CCC on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010.