Abu Dhabi-based polymer producer Borouge has awarded three major engineering, procurement and construction (EPC) contracts collectively valued at about Dh9.54 billion (Ôé¼2.1 billion) for its Borouge III expansion project at its facility in Ruwais.
The companyÔÇÖs Borouge I plant, which started production in 2001, has a current capacity of 600,000 tons of polyethylene per annum. Borouge is expanding its capacity to two million tons per year under the name of Borouge IIÔÇöwhich will enable the company to also produce polypropyleneÔÇöduring the second half of this year.
Borouge now wants to add a third production line to boost total output to 4.5 million tons per year by 2013. A joint venture (JV) between South KoreaÔÇÖs Samsung and ItalyÔÇÖs Maire Tecnimont has been awarded the contract to build two polyethylene units with capacity of 1.08 million tons a year; and two polypropylene units that can produce 960,000 tons each year. South KoreaÔÇÖs Hyundai will build utilities and other facilities.
The lump sum turnkey contract awarded to Samsung and Tecnimont for the two polyethylene and two polypropylene units is worth $1.255 billion. The JV has also won a contract worth $400 million (approx. Ôé¼324 million) for the construction of a low density polyethylene (LDPE) unit with a 350,000 tons per year capacity.
HyundaiÔÇÖs contract for the utilities and off-site facilities for the expanded plant is worth $935 million (approx. Ôé¼760 million).
Tecnimont has a 55 per cent share in the JV, while Samsung has 45 per cent. TecnimontÔÇÖs share of the contracts is worth about $910 million (approx. Ôé¼740 million).
With the contract effective from June 2010, the EPC phase is scheduled to be completed at the beginning of 2014. 
Commenting on the deal, Fabrizio Di Amato, chairman and chief executive officer of Tecnimont, said: "We are very satisfied with these two contract awards, which confirm Maire TecnimontÔÇÖs world leadership in polyolefins and its ability to achieve targets in a highly competitive environment while maintaining internal financial parameters.
ÔÇ£Moreover, these contracts further consolidate our presence in Abu Dhabi and the Middle East.ÔÇØ
Earlier this week, Borouge awarded a $1.07 billion (approx. Ôé¼870 million) contract to Germany's Linde Engineering for the construction of the Borouge III ethane cracker, which will have the capacity to produce 1.5 million tons of ethylene per year.
Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austria-based Borealis, a provider of chemical and plastics solutions. Established in 1998, Borouge employs approximately 1,400 people and has customers in 50 countries, with its headquarters in Abu Dhabi and Singapore. Borealis and Borouge combined manufacture four million tonnes of polyolefins (polyethylene and polypropylene) per year.
Tecnimont is active in around 30 countries, currently controls over 40 operative companies and has a workforce of approximately 5,000 employees. As of 31 December 2009, the group reported revenues of Ôé¼2.1 billion and net income of Ôé¼77 million.
