Borouge is preparing to ship the first batch of cross-linkable polyethylene (XLPE) from its massive Borouge 4 expansion project this quarter, a major step in boosting the UAE’s power infrastructure and energy ambitions.
The new XLPE facility adds 100,000 tonnes of annual production capacity, doubling the company’s total XLPE output to nearly 200,000 tonnes a year.
The specialised material is used in high-voltage underground and subsea power cables critical for grid expansion, renewable energy integration and fast-growing digital infrastructure, including data centres across Asia and the Middle East.
Borouge is the only producer of XLPE in the region, positioning the company to capitalise on surging demand from rapidly expanding economies and next-generation energy projects.
The company said the initial production batch from the new plant will undergo performance testing with leading UAE manufacturers before full commercial ramp-up begins. Once operational at scale, the plant will supply high- and medium-voltage cable materials for major energy projects in the UAE and international 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.”
Located within the Al Ruwais petrochemicals complex, the Borouge 4 mega-project includes one of the world’s largest Borstar plants and has already channelled around $600 million in purchase orders to UAE-based companies. At the peak of construction, more than 24,000 workers were deployed on-site.
The project also aligns with the UAE’s ‘Operation 300bn’ industrial strategy, which aims to increase the manufacturing sector’s contribution to GDP from AED133 billion to AED300 billion by 2031.
Borouge 4, operated by Borouge on behalf of ADNOC and OMV, is expected to increase the company’s production capacity by 1.4 million tonnes annually, transforming Ruwais into the world’s largest single-site polyolefin complex.
The company expects the project to generate up to $400 million in cumulative net profit over three years after ramp-up, contributing roughly 10% annual earnings accretion to Borouge Plc.
Under a newly granted usage agreement, Borouge Plc has secured operational control and marketing rights for Borouge 4, giving the company greater flexibility to maximise long-term value from the asset without requiring upfront capital investment.
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