The Abu Dhabi National Oil Co. (Adnoc) and Belgian plastics producing company Ravago Group have signed a memorandum of understanding for the construction of a polyolefin compounding unit at the Ruwais Industrial Complex in the United Arab Emirates.
In a May 16 news release, the companies said they will aim to use non-prime products generated by Borouge, the joint venture between Adnoc and Austria-based Borealis.
The financial size of the investment was not revealed.
Ravago's manufacturing segment operates 24 plants across producing plastics, rubber and chemicals for various industries including automotive, electronics, and building and construction.
The two companies will also explore other collaboration opportunities for value-added products within the petrochemical chain.
“Adnoc seeks to create partnerships with those who can bring additional value to our hydrocarbon resources, our downstream assets and the UAE economy at large,” said Abdulaziz Abdulla Alhajri, director for downstream directorate at Adnoc in the release.
The proposed collaboration with Ravago, he went on to say, would bring “world-class” technologies and expertise to complement Adnoc's strength.
Earlier this week, Adnoc unveiled plans to expand downstream production at its Ruwais Industrial Complex to the tune of $45 billion.
For that, it has called on potential partners to invest in projects that would “significantly enhance and expand” Ruwais' downstream operations.