Borealis invests €200 million in Borstar® polypropylene plant in Central Europe

• State-of-the-art Borstar® polypropylene (PP) plant in Burghausen, Germany, on track for completion at the end of 2007.
• Supports the company's "value creation through innovation" strategy and strengthens the ability to provide innovative plastics solutions to the advanced packaging markets.

Borealis reports that the 330,000-tonne-per-year (t/y) expansion of its polypropylene (PP) facilities in Burghausen, Germany, based on its proprietary Borstar technology, is progressing according to plan with start up scheduled before the end of 2007.

Product silos are in place, and work on steel structures is advancing. In mid-November, two gas phase reactors were shipped from Linz, Austria to Passau, Germany and then transported to Burghausen for installation.

Borstar PP"The additional capacity will enable Borealis to further develop its leading position in providing value creating plastic solutions for the fast-growing and innovative advanced packaging market," says David Rolph, Borealis Executive Vice President of Polyolefins. "Our proprietary Borstar technology allows cost-efficient plant construction and differentiated product performance. The additional capacity will be used mainly in super-transparent, soft cast and blown film applications for food and medical packaging, thin-wall household and transport packaging, transparent bottles for detergents and cosmetics, as well as in fibres for hygienic applications."

"The expansion of the PP plant will increase the capacity of our Burghausen operations by 80% to 745,000 t/y and complements the existing 240,000 t/y PP and 175,000 t/y HDPE plants. The existing plants are well-regarded both for their efficiency and world class safety record," adds Johann Berger, Managing Director of Borealis Burghausen.

OMV Demonstrating the close collaboration between Borealis and , a 35% shareholder of Borealis, OMV is constructing a new metathesis system, a large new cracking furnace and is expanding its existing ethylene system in the vicinity. The increase in monomer production capacity will enable OMV to provide 100% of the propylene needs to the expanded Borealis plant. OMV is also the major supplier of olefins to Borealis' polyolefin plant in Schwechat, Austria, home of the world's first Borstar PP plant.

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