Formation of Borouge International completed, world’s fourth-largest polyolefins producer

OMV and XRG, Adnoc’s international investment arm, announced the successful formation of Borouge Group International, the fourth-largest polyolefins producer with premium products, pioneering technology and a global footprint.

Borouge International has been formed by the combination of Borouge Plc and Borealis, with the new entity acquiring Nova Chemicals. Backed by long-term shareholders OMV and XRG, Borouge International combines the highly complementary strengths of three polyolefins leaders and will benefit from one of the most geographically diversified and innovative platforms in the sector.

The new company is headquartered in Austria, with regional headquarters in the United Arab Emirates. Borouge International will operate corporate hubs across North America, Europe and Asia, with innovation centers in Austria, United Arab Emirates, Canada, Finland, Sweden and China, driving innovation in core demand markets and ensuring close collaboration with customers. Borouge International will leverage its integrated global manufacturing sites and advantaged feedstock access to deliver worldwide supply chain resilience.

The company will benefit from a superior resilient margin profile and well over 500 million dollars in identified Ebitda run-rate synergies per annum, with 75% expected to be realized within the first three years. The company’s global reach, combined with long-term shareholders and a robust capital structure, will deliver resilience throughout the business cycle and an enhanced ability to drive consistent performance and sustainable value for shareholders.

Borouge International's scale, proprietary technology, and operational strength position the company to deliver materials and technologies powering the transformation of the global economy. Its ambitious growth strategy will allow monetization of its strong innovation capability, based on proprietary technologies in key client markets, from energy, mobility, and AI infrastructure to sustainable packaging and healthcare solutions. With near-term growth projects like the 1.4 million tonnes Borouge 4 site (currently owned 70% by Adnoc and 30% by OMV) Borouge International has access to a leading global production capacity of 13.6 million tonnes per annum.

Adnoc’s stake in Borouge International has been transferred to XRG, a wholly-owned subsidiary of Adnoc, complementing XRG’s Global Chemicals Platform and fully supporting its ambition to become a top three global chemicals investor. Borouge International will be jointly controlled as an equal partnership between OMV and XRG, each holding a 50% stake.