OMV Aktiengesellschaft (OMV) and ADNOC announced strong progress towards the formation of Borouge Group International AG, including the signing of an Asset Usage Agreement for the Borouge 4 (B4) production complex.

The formation of Borouge Group International AG, through the combination of Borouge Plc and Borealis, and acquisition of Nova Chemicals, is progressing according to plan, with the transactions close expected by the end of March 2026, subject to customary conditions.

B4 is a new integrated polyolefins production complex with 1.5 million tonnes ethane cracker and 1.4 million tonnes of polyethylene capacity, with the first plant expected to start up this quarter. Boasting the latest, proprietary Borstar technology to produce advanced, high-premium polyethylene, B4 is 70% owned by ADNOC and 30% by OMV, and forms part of the Borouge production site, set to become the world’s largest single-site polyolefins complex.

The Agreement enables Borouge Plc, and subsequently Borouge Group International AG, to operate and market the volumes of B4 in return for an at-cost asset utilization fee. It will provide both entities with financial flexibility while delivering an estimated USD 400 million in cumulative net profit over the next three years and representing approximately 10% annual accretion to earnings to Borouge Plc post ramp up. It is anticipated that the Agreement for B4 will be maintained until Borouge Group International AG acquires the asset from its current owners, which is currently not expected before 2029, thereby providing flexibility on the timing of future capital outlays.

B4 operations are expected to ramp up progressively throughout 2026 and with the signing of the Agreement, Borouge Group International AG will have access to 13.6 million tonnes of nameplate production capacity across Europe, the Middle East and North America, positioning the company as the world’s fourth largest polyolefins producer. The combined entity is expected to continue delivering a best-in-class margin profile and generate significant synergies.

Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, a wholly owned subsidiary of ADNOC, complementing XRG’s Global Chemicals Platform, and fully supporting its ambition to become a top three global chemicals investor. Borouge Group International AG will then be owned at equal 50% shareholding by XRG and OMV respectively. As disciplined, value-creating owners, OMV and XRG are committed to unlocking the full potential of Borouge Group International AG, including the realization of synergies.