Borouge, a leading provider
of innovative, value creating plastics solutions, has today awarded a service
contract to Agility (Abu Dhabi) PJSC to build the Borouge Compound Manufacturing
Unit (CMU) and Shanghai Logistics Hub in Shanghai, China, and to provide local
logistics services for Borouge’s customers in Asia for a duration of 10
years with effect from its operational start up date in 2010.
Following the contract win, Agility will undertake the design, development
and subsequent operation of the logistics hub, to ensure sufficient infrastructure,
storage facilities, packaging and distribution services to accommodate Borouge’s
products dispatched from Abu Dhabi in the United Arab Emirates (UAE). Agility
will handle and distribute a total volume of approximately 600 kilotonnes of
polyolefins out of the Shanghai logistics hub annually.
Borouge’s current production capacity in the UAE is 600 kilotonnes of
Borstar® polyethylene per year. With the ongoing Borouge 2 project expansion,
this capacity will increase to 2 million tonnes per year by the middle of 2010
and will add polypropylene to the product mix. Construction of the Borouge 2
facility has already started and consists of a 1.5 million tonne ethane cracker,
the world’s largest olefins conversion unit (with a capacity of 750 kilotonnes),
two Borstar® polypropylene plants with a total capacity of 800 kilotonnes
and a 540 kilotonne Borstar® polyethylene plant.
Abdulaziz Alhajri, CEO of Abu Dhabi Polymers, the Borouge manufacturing company,
explained: “The Shanghai logistics hub is one of several regional logistics
hubs that will provide storage and logistics support for our operations close
to our customers. It will enable us to provide a fast, flexible delivery service
to our customers, for all of Borouge’s high value product lines. Agility
comes to us with a strong reputation in the global logistics market for delivering
cost-effective and robust solutions. Hence, we had no hesitation to select them
as a partner in this endeavor.”
Harald Hammer, CEO of the Borouge marketing company added: “The Borouge
CMU will be producing 50 kilotonnes annually of high quality compounds, manufactured
from enhanced Borstar® polypropylene specifically for the rapidly growing
Chinese automotive market. Along with the logistics hub, the CMU will bring
us closer to our customers, helping them to add value to their business”.
Philip Browitt, President of the Agility Chemical Speciality business explained:
“At Agility we provide truly integrated logistics solutions to a wide
range of industries leveraging our vast global network and differentiated by
our focus on personal service. For the Borouge Shanghai Logistics Hub &
CMU, we combined our chemical knowledge and industry heritage with the expertise
of Agility Abu Dhabi and Agility China to differentiate and win this project.
We enjoy a proven track record in the global chemical logistics sector and are
delighted to extend the highest level of our professional services to Borouge
and its customers in the region.”
Houssam Mahmoud, CEO of Agility (Abu Dhabi) PJSC, pointed out that the contract
win demonstrated Agility’s leadership in providing gateway handling facilities
in China and South East Asia. “Agility differentiates through regional
penetration and relationships, chemicals knowledge and investment strategy and
the Borouge contract is the latest addition to the growing portfolio of Agility”
he added.
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