Wanrong new materials, a subsidiary of Wanhua Chemical, signed a project cooperation agreement with ADNOC in the UAE, Borealis in Northern Europe, and Borouge Chemical. Meanwhile, Sinopec will jointly build a special polyolefin integrated facility in Fujian, China, to carry out a special polyolefin project with an annual production capacity of 1.6 million tons.
On July 24, Caishen reported that Wanrong New Material Co., Ltd. (Fujian), a subsidiary of Wanhua Chemical Group Co., Ltd. (Wanhua Chemical), along with Abu Dhabi National Oil Company (ADNOC) and its affiliated Borealis and Borque Chemical successfully signed a 'Project Cooperation Agreement.' According to the agreement, the four parties will jointly build a special polyolefin integrated facility in Fuzhou, Fujian Province, and carry out a special polyolefin project with an annual production capacity of 1.6 million tons.
This partnership marks another important move for Wanhua Chemical in the field of high-end new materials. After legal and regulatory approval, the parties will form a Sino-foreign joint venture company with a shareholding ratio of 50%:50% to promote the feasibility study and subsequent construction of the project together.
By partnering with internationally renowned energy and petrochemical companies this time, Wanhua Chemical aims to use Borealis' proprietary Borstar technology, combined with the company's advantages in the ethane supply chain and polyurethane industry chain, to achieve efficient operation and eco-friendly production of the project. The project will not only introduce ethane-based cracking technology, but also fully utilize hydrogen and carbon dioxide in the production of polyurethane, and reduce carbon dioxide emissions as a whole through 100% zero-carbon power supply.
Special polyolefins are a kind of polyolefin material with special properties and uses, mainly used in the fields of auto parts, medical devices, high-end pipes, packaging materials, electronics, and electrical appliances.
As an energy giant in the UAE, ADNOC has a significant investment in petrochemicals, and Borealis is one of the largest polyolefin producers in Europe. It is a joint venture between ADNOC and OMV, an Austrian oil and gas group, with shareholding ratios of 25% and 75%, respectively; Borouge is a joint venture between Borealis and ADNOC, with ADNOC and Borealis each holding 54% and 36% of the shares, respectively, and the remaining shares being publicly traded.
In March of this year, ADNOC acquired a 24.9% stake in OMV from Abu Dhabi sovereign wealth fund Mubadala Investment Company. After the transaction, ADNOC said it was able to indirectly increase its shareholding in Borealis and Borouge by holding shares in OMV.
Wanhua Chemical said that this partnership will not only promote the in-depth implementation of the company's internationalization strategy, enhance the company's competitiveness in the global high-end polyolefin market, but also help the international development of China's high-end gas shipbuilding industry.
According to the announcement, the 'Project Cooperation Agreement' is currently only a preliminary framework agreement, and further details of the cooperation are yet to be clarified. The signing of this cooperation agreement represents an important step for Wanhua Chemical in the field of high-end new materials.