Abu Dhabi: Adnan Najm
Hazeem Sultan Al Suwaidi, CEO of Borouge, confirmed that the company’s world-class petrochemical plants in Ruwais, Abu Dhabi, occupy a strategic location close to the raw materials it receives from the Abu Dhabi National Oil Company “ADNOC” – one of its major shareholders.
In an interview with Al Khaleej, Al Suwaidi said that the Borouge Innovation Center in Abu Dhabi received more than 500 patents and submitted more than 1000 patent applications thanks to the efforts of Borouge scientists in the UAE and that more than 20 % of our annual sales are Products developed at the Innovation Center. Al-Suwaidi says: “Our global presence is one of our main competitive advantages, as it enables us to deal directly and closely with our customers to be able to understand their needs, and this increases the efficiency of our solutions and makes them more capable of designing according to customer requirements. ” Here are the details of the conversation:
Is Borouge an Emirates company? And where are its other places?
We at Borouge are proud to be an Emirates based company in Abu Dhabi and with a worldwide presence, where one of our manufacturing facilities is built, which enhances the flexibility, efficiency and speed of our response to needs. of customers. Our world-class petrochemical plants in Ruwais, Abu Dhabi, are strategically located near the sources of raw materials we receive from the Abu Dhabi National Oil Company (ADNOC) – one of our major shareholders.
Through (our Polyolefin Production Unit) in Shanghai, we develop and manufacture value-added polyolefins for the automotive industry in China. We also benefited from the use of Borstar technology, which is licensed by the shareholder of Borouge Borealis, which has enabled us to foster innovation and diversity in our products.
In 2015, the Borouge Innovation Center opened in Abu Dhabi. Through our work at this center, we have received more than 500 patents and submitted more than 1000 patent applications thanks to the efforts of Borouge scientists in the UAE, and more than 20% of our annual sales are products developed in Innovation Center. Our application center in Shanghai provides critical testing support for advanced polyolefins to serve the North Asian automotive industry.
We also have extensive logistics capabilities supported by a narrow network of warehouses for product storage in our key markets, including six warehouses in China, two warehouses in Southeast Asia and one warehouse each in Europe, America and the Khalifa Port in Abu Dhabi. . In addition to our sales and marketing headquarters in Singapore, we have a network of offices located in the Middle East, Asia Pacific region and the Indian subcontinent to serve clients worldwide.
direct sales channels
How does your worldwide presence contribute to supporting your customer relationships? How do you compare it to current industry standards?
Our global presence is one of our main competitive advantages, as it enables us to deal directly and closely with our customers to be able to understand their needs and this increases the efficiency of our solutions and makes them more capable of designing according to customer requirements. In addition, we have strong direct sales channels in the fast-growing markets of Asia, the Middle East and Africa, and by selling about 85% of our total products through direct channels, as well as interacting directly with our customers, we have confidence to establish our position at the top of companies operating in this field.sector.
Through these relationships and joint development projects with our clients, we harmonize our innovation efforts accordingly, while continuing to provide expertise and technical support. The strength of our supply chain and logistics business network is an integral part of our success in achieving our goals and we are committed to making a good investment in this area. At the same time, we are meeting the growing demand for solutions that support circular economies around the world, ensuring the sustainability and recycling of our solutions. All of the above have contributed to the growth of our competitive position in most of the world markets, which are witnessing a rapid increase in demand for the materials we produce.
business in Asia
How long have your activities started in Asia and what do these objects produce?
Borouge Pte Ltd was established in the Asia Pacific region in 1998 and is headquartered in Singapore, where it was responsible for marketing, selling and distributing our products to our customers worldwide. In Asia, Borouge’s sales and distribution network extends to include (but is not limited to): South Asia (Singapore, Vietnam, Indonesia, Thailand, Malaysia, Australia, New Zealand, the Indian subcontinent including India, Bangladesh, Sri Lanka and Nepal), and North Asia (China, Japan, and Korea).
In China, our application center in Shanghai works closely with our innovation center in Abu Dhabi and our polyolefin production unit in Shanghai produces a range of materials that they develop. In an effort to improve communication and close cooperation with our customers, we have opened offices for “Borouge” in Beijing, Shanghai and Guangzhou to serve geographical areas within China. We also have logistics centers in Guangzhou, Shanghai, Ningbo, Tianjin, Luguo and Wuhan.
The polyolefin production unit opened in Shanghai in 2010 with a production capacity of 50,000 tons per year, and then increased to 90,000 tons per year in 2015. With the increase in the use of polymers in cars, especially electric cars, due to of energy conservation, cost reduction and increased environmental benefits such as reducing carbon footprint, our polyolefin production unit has developed solutions in response to the rapidly growing Chinese vehicle market. 95% of the total products of Borouge polyolefin production unit in China are sold to domestic and international joint ventures in the automotive industry, including Shanghai Automobile Industry Corporation, General Motors, FAW-Volkswagen and BP BMW Brilliance, and many Chinese manufacturers of developing cars. like Geely, Li Auto and Neo.
What are some of the innovations that have come from staying in Shanghai?
The cooperation of the Borouge Innovation Center in Abu Dhabi with the Borouge Application Center in Shanghai is a good example of Borouge’s cooperation with its clients, as they developed solutions that meet the changing Chinese government standards regarding fragrance emissions from some materials used in the automotive sector. These solutions are currently used for the production of car interior parts by leading car manufacturers such as Volkswagen and General Motors.
Relations with China
How did your operations in China help strengthen economic relations between China and the UAE, especially in terms of human resource development?
The UAE is China’s largest partner in the Middle East and North Africa for non-oil trade. The volume of trade exchanges between the UAE and China has reached more than $ 50 billion and it is intended that by 2030 the volume of this exchange will increase to $ 200 billion.
Borouge’s business has expanded in China over the past twenty years, from the eastern and southern coastal regions to the central and western regions. We have two objectives in our development strategy: “Go West” and “Green Belt”. The first is about continued growth in the western region, while the other objective is focused on the central region. Expansion in these two areas has enabled us to access a growing number of business opportunities.
Our colleagues working in China, including UAE nationals, contribute to the efficiency of operations at the polymer composite manufacturing unit in Shanghai. As China continues to strengthen its policies to create a more sustainable environment, Borouge is proud that its solutions are able to contribute to strengthening these national efforts and have a positive impact on the local community.
The most attractive markets
Can you shed more light on your current development policy program, which aims to expand globally? over the next few years?
– We expect an increase in demand for our polymer solutions, due to the significant increase in our key markets as the industrial environment of our materials “Polyolefins” is a healthy and active environment.
Borouge focuses on the most attractive global markets such as Asia Pacific, the Middle East and Africa. With global demand growing to around 200 million tonnes in 2021, 68% of demand comes from major Borouge markets. Moreover, these markets are expected to contribute to the growth of demand growth in the future, as they represent 86% of the global demand growth between 2022 and 2026. The composite annual growth rate is expected to increase by 5% during this period.
To increase our ability to supply these markets, we recently celebrated the launch of our fifth polypropylene production unit in Ruwais. With this investment in additional production capacity, we expect our total production to reach 5 million tonnes per year, which is equal to 10 times our initial production capacity in 2001. The start of the fifth polypropylene production unit is coming following the recent announcement of the final investment decision for the international standards expansion project (Borouge 4), which will contribute to the transformation of Borouge production facilities in Abu Dhabi into the largest polyolefin production complex in the world in one country. In short, Borouge’s motto for the future is to continue to achieve and move towards excellence.