Borouge to expand production to include melamine

Borouge announces that it is continuing with the construction of a new melamine plant in Ruwais, Abu Dhabi, the location of its existing world-scale polymer production facilities. The company is planning to take over a project currently being undertaken by the Abu Dhabi National Oil Company (ADNOC) and AMI Agrolinz Melamine International (AMI) in Ruwais.

The development would see the creation of a melamine plant with an annual production capacity of 80,000 tonnes. The front end engineering and design phase has begun and it is expected that production would come on stream following the completion of Borouge 2, the major expansion which will triple Borouge's Borstar® polyolefin production capacity.

Increasing global demand for melamine, particularly in the Middle East and Asia Pacific regions represents an opportunity for Borouge to broaden its product portfolio in line with its strategy to explore opportunities for expansion. The new plant will benefit from the proximity to Borouge's Ruwais facilities, from synergies with existing operations and from the company's production expertise and operational track record.

The development of a melamine plant within Borouge would represent a rational step for its owners, ADNOC and Borealis. As announced in December 2006, AMI' shares are planned to be contributed to Borealis by its current owners, the International Petroleum Investment Company (IPIC) of Abu Dhabi and OMV, the Austrian oil and gas group. AMI, as a subsidiary of Borealis, will provide its own proprietary melamine technology and market know-how to Borouge for the project.

Harri Bucht, Chief Executive Officer of the Borouge production company in Abu Dhabi, commented: "Integrating this project into Borouge will be a natural move for us. With our depth of experience and proven operational excellence, the project will benefit from a number of synergies as well as increasing the overall competitiveness of our operations."

END