Borouge 4 to double XLPE output with new UAE plant launch

The new XLPE plant adds 100,000 tonnes of annual capacity, doubling Borouge’s current XLPE output to nearly 200,000 tonnes per year. XLPE is used in high-voltage underground and underwater power cables that support grid expansion and the global energy transition. Borouge operates the only plant of its kind for XLPE in the region, strengthening its ability to meet the rising demand from fast-growing economies and data centres across Asia and the Middle East.

Borouge will work with leading UAE-based manufacturers to performance test the initial batch of materials produced at the new XLPE plant. Once testing is complete, Borouge will ramp up its product at the new plant to deliver material for high and medium voltage applications that will support the growing demand of energy projects in the UAE and other major markets.  

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said: “The Borouge 4 project continues to advance at pace, reflecting the strength of our partnerships and our commitment to operational excellence. The completion of the new XLPE plant is a major milestone, enhancing our ability to deliver premium polyolefin solutions that support the UAE’s growing energy sector and meet demand in key markets worldwide. By expanding capacity and deploying best-in-class technologies, we are well positioned to execute our long-term value creation strategy for shareholders.”

The Borouge 4 mega project, located within the Al Ruwais petrochemicals complex, includes one of the largest Borstar plants, and has awarded approximately $600 million in purchase orders to UAE based companies in connection with the project’s development. More than 24,000 people worked on-site at the peak of construction.

The project is aligned with ‘Operation 300bn’ which aims to develop the UAE’s industrial sector and enhance its role in stimulating the national economy. The strategy aims to raise the industrial sector’s contribution to the national GDP from AED 133 billion (~$36.22 billion ) to AED 300 billion (~$81.69 billion) by 2031.

Borouge 4 will be operated by Borouge on behalf of the project’s owners ADNOC and OMV, and will boost the company’s production capacity by 1.4 million tonnes to make Ruwais the world’s largest single-site polyolefin complex. Borouge 4 is expected to generate a cumulative net profit of up to $400 million over three years, representing approximately 10% annual accretion to Borouge Plc earnings post ramp up.

Borouge Plc has been granted operational control and marketing rights for Borouge 4 by the project owners’ via a usage agreement. This framework gives Borouge Plc greater flexibility in managing the asset and in capturing value over time, without requiring upfront capital investment from Borouge. 

The successful formation of Borouge International, completed on 30 March 2026, creates the fourth-largest polyolefins producer globally as measured by nameplate capacity, combining premium products, proprietary technologies and a global footprint. Borouge Plc is now part of Borouge International and is expected to benefit from the global footprint of the new platform, strengthening Borouge Plc’s long-term competitiveness, enhancing geographic diversification and scale to provide a broader base for future value creation, while maintaining a clear commitment to shareholder returns.

Note: The headline, insights, and image of this press release may have been refined by the ALCHEMPro staff; the rest of the content remains unchanged.

ALCHEMPro News Desk (JP)