In spite of the current global downturn, Borouge -- a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis -- is continuing with its major investment plans in China, and elsewhere in the Middle East and Asia. Borouge is currently tripling its polyolefins manufacturing capacity to 2 mln tpa by 2010 under its Borouge 2 initiative. In addition, Borouge is planning to bring on stream an additional 2.5 mln tpa of polyolefins under its Borouge 3 initiative, the next phase of its expansion plans. In addition to enhancing its Borstar technology-based polypropylene and polyethylene offer, this major expansion to be completed at the end of 2013 will include the production of low density polyethylene (LDPE) production capacity to meet the specific needs of the rapidly growing wire and cable infrastructure market and to compliment Borealis' current investment in 350,000 tpa of LDPE capacity in Sweden. Further, Borouge is also investing in an Innovation Centre in Abu Dhabi which will become operational during 2010.
Borouge is investing in a new compounding manufacturing unit in Shanghai for the automotive industry which will be operational by mid-2010 will supply up to 50,000 tpa of compounded resins to its customers. This has the potential to expand to 80.000 tpa of compounded resins in the future. Also, Borouge is investing in two large scale logistics and distribution hubs in Guangzhou and Shanghai to deliver smooth logistical services to its customers in China. The Guangzhou logistics hub will supply and distribute approximately 246,000 tpa of value-added polyolefins mainly to its customers in the South East China region. The Shanghai hub will be capable of handling up to 600,000 tpa with effect from mid-2010. The company is also investing in a logistics hub in Singapore that will provide local logistics and distribution services to its customers throughout South East Asia when it becomes operation in mid-2010. It will provide packaging and warehousing facilities for a total annual volume of approximately 330,000 tpa.