NEWS
Borealis and Borouge in polyolefins merger
Oil and chemicals groups OMV and Adnoc have announced their intention to combine their polyolefins businesses and they will have equal shareholdings. OMV-owned Borealis and Borouge – which was formed in 1998 in a joint venture between Borealis and Adnoc – will come together under a new jointly controlled company named Borouge Group International. It is envisaged the
Borouge 4 project to boost polyolefins capacity by 1.4m tpa, making the Abu Dhabi facility the world’s largest single-site polyolefin complex, will be retrans- ferred to Borouge Group International at the end of 2026.
Nova Chemicals is also set to become part of the new group once Adnoc completes its acquisition of the North American polyole- fins producer. When combined, the three complementary businesses will create the fourth largest polyolefins group in the world with 12.2m tpa capacity.
Sirmax JV in India expands
Italy-headquartered Sirmax and local partner Autotech have inaugurated the expansion of their joint venture plant in Palwal, India, increasing its production capacity to 30,000 tonnes/yr of PP compounds.
The Borouge 4 project in Abu Dhabi is scheduled to be com- pleted by the end of 2025
The combination of businesses is expected to realise synergies of around $500m run-rate EBITDA per annum, coming from improved procurement, cross-selling opportunities, optimisation and efficiencies. “Together with Adnoc,
our strategic partner of 25 years, we are creating a global polyolefins leader, exceptionally positioned for value creation by accessing the largest and most cost advantaged markets,” said Alfred Stern, Chairman of the Executive Board and CEO of OMV. “We aim to
significantly increase the sales volumes of innovative polyolefin premium prod- ucts and be at the forefront of renewable and circular economy solutions.” OMV will make a €1.6bn cash injection into Borouge Group International to equalise shareholdings with Adnoc. Borouge Group Interna- tional will have more than 11,000 employees at its locations in the Americas, Europe, Asia and the Middle East. �
www.omv.com �
www.adnoc.ae
Sirmax said it is growing in India by 15% annually, and the redevelopment of the Palwal site has trans- formed it into a modern, technologically advanced facility with four new extrusion lines, state-of-the- art laboratories, and a new automated warehouses. “The completion of the
Palwal plant expansion reflects our commitment to provide world-class materials and solutions to our customers,” said Achal Thakkar, Managing Director of Autotech-Sirmax India. Sirmax’s turnover for 2024 was €420m, up from €410m in 2023, thanks to a 10% increase in global production volumes. Driving the strong perfor- mance were India, Brazil, and the US. �
www.sirmax.com
RadiciGroup to sell off polymers business
Investment group Lone Star has entered into a definitive agreement to acquire the Specialty Chemicals and High Performance Polymers business areas of Italian engineering plastics compounder RadiciGroup. The transaction is expected to close in the second half of 2025. The Radici family will retain control of the Ad-
www.compoundingworld.com
vanced Textiles Solutions Business Area. “The agreement with Lone Star
Funds marks the beginning of a new chapter in the global expansion of RadiciGroup’s Specialty Chemicals and High Performance Polymers businesses which boast a strong mutual integra- tion,” said Angelo Radici and Maurizio
Radici, President and Vice President of RadiciGroup. RadiciGroup serves customers in
Europe, the Americas, and Asia and is predominantly known for its PA products but it also produces com- pounds based on PPS, POM and other engineering plastics. �
www.radicigroup.com
March 2025 | COMPOUNDING WORLD 5
IMAGE: BOROUGE
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