Abu Dhabi-based leading petrochemical company and manufacturer of polyolefin solutions Borouge expects to achieve $400 million in savings from its Value Enhancement Programme by the year end.
Initiated at the end of 2022, the programme has already achieved over $400 million by the first quarter of 2023 and is designed to enable Borouge to pursue future growth opportunities, achieve healthy margins and premia versus benchmark pricing, and further enhance its competitive position.
The programme reinforces Borouge’s 2030 strategy for growth, which focuses on strengthening its market position by growing production capacity, pursuing operational excellence, and offering differentiated and more sustainable products to customers across international markets, in light of the increased demand of Borouge products over the next five years, as governments continue to invest in infrastructure solutions. Khalfan Al Muhairi, Senior Vice President, MEAE Region at Borouge, says, “Our highly differentiated product mix has enabled us to become more resilient and manage the cyclical nature of our business.”
With circular economy a key area of focus, Borouge’s sustainability policy is transforming its business to create a positive impact on the planet through circularity.
“As brand owners adopt more responsible practices and promote the circular economy, there is a clear need for mono-material flexible packaging solutions which are fully recyclable and sustainable. Together with value chain partners such as OEMs and converters, we have been focusing on developing polyethylene and polypropylene mono-material flexible packaging solutions to address this challenge,” explains Al Muhairi.
The Middle East and Africa region still remains Borouge’s growth engine, representing around one third of the company’s entire business by volume. Future target markets include Asia, the Middle East, and Africa, expected to account for about 86% of global polyolefins demand growth from 2022 to 2026. “Given our ongoing capacity expansion in the UAE, we are in a competitive position to provide timely and reliable supply to our customers in these regions,” adds Al Muhairi
Even while sharpening its focus on the growing demand in East Africa, Asia Pacific continues to be the largest sales market for Borouge, contributing 65% of the total revenue in 2022, with China and India being key growth markets. “Within Asia, we have clear growth plans for sustainable applications in various sectors, including advanced packaging, having a strategy in place when it comes to circularity,” affirms Al Muhairi.
Besides Asia, the Middle East and Africa are the competing high growth markets in polyolefin demand, expected to outstrip supply and outpace GDP growth. “We are optimistic and excited about our sustainable growth in these markets, which demonstrate healthy and increasing demand for polyolefin products,” adds Al Muhairi.
