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

2014 leaves some resin firms in the black while others struggle

January 23, 2015 2:37 pm ET

On the financial side, 2014 was good for Hexcel Corp., so-so for Celanese Corp. and it could have been better for Omnova Solutions.    More

Image

Clariant's ColorForward predicts future consumer trends

January 23, 2015 1:33 pm ET

Clariant International Ltd. is marking a decade of color forecasting with the 10th edition of its ColorForward program.    More

Image

The future for PolyOne is colorful

January 23, 2015 1:28 pm ET

PolyOne Corp. is writing four color stories for 2016.    More

Image

Mexico's Polymer Solutions looks to grow, expand offerings with name change

January 23, 2015 12:03 pm ET

British biodegradable additives developer Symphony Environmental Technologies plc's Mexico distributor has changed its name from Plásticos...    More

Image

Drop in oil leads to resin pricing plunge

January 22, 2015 3:16 pm ET

In most Decembers, resin makers try to focus on the holidays and on spending time with their families. This improves their mental well-being and also ...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

More Events