Borouge, a leading petrochemical company that provides innovative and differentiated polyolefin solutions, has secured two new contracts worth a combined value of AED 55 million ($15 million) to supply polyolefins to its partner customers – leading cable manufacturer Ducab and Abu Dhabi-based Union Pipes Industry (UPI).
Both companies will use Borouge materials to produce energy and infrastructure applications to construct Borouge 4.
Ducab, one of the UAE’s largest home-grown energy solution providers and industrial manufacturing businesses, will produce low-voltage and medium-voltage cables to power Borouge 4 using Borouge’s energy solutions.
UPI, one of the Mena region’s largest rugged and durable pipe manufacturers, will use Borouge’s ‘Made in UAE’ solutions to produce pressure pipes for the cooling and public sanitation system of Borouge 4.
On the contract wins, CEO Hazeem Sultan Al Suwaidi said: "Our latest agreements with Ducab and UPI signal the continued progress of the Borouge 4 project and are testament to our commitment to the UAE’s In-Country Value programme – providing locally sourced and ‘Made in UAE’ solutions that shape a strategic project of this scale."
"We look forward to building on our track record of success and unlocking long-term value through the aggressive pursuit of revenue growth and cost optimization," he stated.
Ducab Group CEO Mohammad Almutawa said: "Building strategic partnerships with national champions in the industrial sector is aligned with the goal of the Operation 300bn initiative, creates in-country value and boosts economic competitiveness. This contract will pave the way for more future cooperation that will serve our common goals."
UPI General Manager Mohamed Hageb said its collaboration with Borouge had played an important role in enabling strategic and national projects such as Borouge 4.
"Our high-density polyethylene pipes have a 50-year lifecycle, are capable of withstanding harsh weather conditions, and are highly durable making them ideal for the mega-scale demands of Borouge 4. We are delighted to be collaborating once again with Borouge and building on our decades-long partnership, noted Hageb.
Borouge 4 supports the Abu Dhabi National Oil Company (ADNOC) In-Country Value (ICV) programme, 60 percent of the award value will flow back into the UAE’s economy. Furthermore, it will enable the next phase of growth at Al Ruways Industrial City and supply feedstock to the TA’ZIZ Industrial Chemicals Zone.