Polyolefin supplier Borouge investing in Asia

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: May 22, 2013 1:22 pm ET
Updated: May 23, 2013 1:50 pm ET

Image By: Plastics News photo by Rebecca Kanthor Vincent Ong, Borouge's senior vice president for North Asia, at Chinaplas

Related to this story

Topics Materials, Materials Suppliers, CHINAPLAS

GUANGZHOU, CHINA — Polyolefin supplier Borouge has reorganized its China operations to reflect the growing importance of the region to its global business.

"Borouge is on an exponential growth journey as we reinforce our business momentum in Asia," said Wim Roels, CEO of the sales and marketing unit, Borouge Pte. Ltd., at a news conference at Chinaplas in Guangzhou.

A new North Asia region was formed in April 2013, explained Vincent Ong, formerly head of Greater China and now senior vice president of the newly created North Asia regional territory.

"We are excited about the growth strategy and are aggressively making preparation for the expansion of our business," said Ong, who joined Borouge almost a year ago.

In a one-on-one interview with Plastics News, Ong said the new regional territory expands from Greater China to add in Korea and Japan. Plans are in the works to open a regional center in Shanghai, expanding on the compounding plant there that primarily makes specialty products for automotive applications.

The automotive market is a key part of the North Asia regional strategy, Ong said. That is why the company has decided to enter the Japan market, he said, and why China remains important.

"Automotive is a fast-growing industry in China. We will be doing an expansion to increase the capacity of our compounding plant from 50 kilotons per year to 90 kiloton per year in the next two years," he said.

Borouge's factory in Fengxian also will increase capacity in the next two years, he added.

"We want to develop into a bigger critical mass. The actual space is not increased, [it's] just the capacity that we want to increase."

The Chinese polyolefins market is expected to surge from 32 million in 2010 to 59 million tons in 2020, according to the company.

The company also plans to open two more warehouses in the region. Borouge already has warehouses in Guangzhou Nansha and Shanghai Fengxian, the new facilities will open in Ningbo and Tianjin by the end of 2013.

The identification of Shanghai as a regional center has the company on the search for a new office space. The regional center offices will move to a site in Pudong that has not been finalized. The offices also will house a research and development center.

Ong revealed that he is looking into the western regions of China as a future direction of development strategy.

"The significant thing is that China is undergoing rapid infrastructural changes. Air transport, land transport, rail transport. High speed rail, roads. Airports. It's making a lot more remote regions a lot more accessible. This actually force the growth. If we don't participate in this kind of growth we will miss out on next leap of growth in China," Ong said.

Ong believes the Chinese government's push to develop its western region is about recognizing the need for an increase in domestic consumption.

"I think that it is about time that we change our model to adapt to what is the local need of the Chinese market." But Ong says it is still too soon to say how this will play out in the company's regional strategy. "We are studying. A decision to build a hub must serve the needs of the company in the long term, not just the short term."

But he said that going west is a future step for sure, as that is where he sees his clients going. "They build roads, we build cars. And they build factories, we provide plastic. And then they build power station we provide the cable," he said.

The company is also expanding its support of local talent. On May 20 at Chinaplas, the company signed a partnership agreement with the China University of Petroleum, expanding its university sponsorship program to seven universities in Asia — including five in China.

"Signing the sponsorship agreement with the CUP is in line with our global commitment to attract and develop qualified scientific talents in the chemical industry across Asia," Roels said.

Borouge is an Abu Dhabi-based joint venture of Austria's Borealis AG and Abu Dhabi National Oil Co. in the United Arab Emirates.


Comments

Polyolefin supplier Borouge investing in Asia

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: May 22, 2013 1:22 pm ET
Updated: May 23, 2013 1:50 pm ET

Post Your Comments


Back to story


More stories

Image

Lower oil prices will continue to impact PE, PP resin pricing

March 2, 2015 2:05 pm ET

Lower oil prices will continue to affect North American markets for polyethylene and polypropylene resin in the months ahead.    More

Image

BASF keeps innovating to drive customers

March 2, 2015 11:39 am ET

Materials giant BASF Performance Materials is keeping innovation alive with new products and processes.    More

Image

BASF earnings up despite 'disappointing economic development' for Europe

March 2, 2015 10:50 am ET

Chemicals giant BASF SE said Feb. 27 it had hit its goal for 2014, increasing earnings, “despite the disappointing economic development in...    More

Image

Borealis reports record profit for 2014

March 2, 2015 10:29 am ET

Borealis AG, the Austria-headquartered chemicals giant, announced record annual net profits, numbers the group said were boosted by improved margins...    More

Image

Experts explain why resin sales are down in a healthy US economy

February 27, 2015 1:58 pm ET

The economies of the U.S. and Canada posted solid growth in 2014 — even though resin demand in those countries lagged behind.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events