Polymer producer Borealis A/S is set to boost polyolefin capacity at its Schwechat, Austria, site by 970 million pounds, raising the plant's total to about 2.2 billion pounds annually by 2005.
The 200 million euro ($230 million) project includes the construction of a 770 million-pound-per-year Borstar technology polyethylene plant.
That segment of the project will help the company capture a share of growing demand for linear low density PE enhanced film products for flexible consumer packaging and industrial applications, said David Rolph, executive vice president of Borealis' polyolefins business group.
Once the new PE plant is operating, the firm plans to shut part of its existing 770 million pounds of capacity. Closures will include two old, 110,000-pound LDPE plants and a 220,000-pound high density PE unit.
Schwechat will retain one LDPE unit with 220 million pounds of capacity.
The company, based in Lyngby, Denmark, also intends to expand its Borstar polypropylene plant at Schwechat by 199 million pounds, to 660 million pounds. That will take total PP capacity at Schwechat to 1.3 billion pounds, allowing Borealis to supply increasing demand for advanced PP grades, it said.
According to John Taylor, Borealis chief executive officer, Schwechat then will have annual polyolefin capacity of about 2.2 billion pounds.
The extra polyolefin capacity will raise Borealis' total worldwide Borstar production capacity to 3.85 billion pounds.