Borealis expands XLPE production in Sweden, boosting medium- and high-voltage cable insulation to support renewable energy integration and energy transition.
Borealis has announced two significant investment projects at its Stenungsund, Sweden, site to expand its cross-linked polyethylene (XLPE) production capacity. These initiatives aim to meet the rising global demand for insulation materials used in medium-, high-, and extra-high voltage (MV, HV, and EHV) power cables. Such cables are crucial for strengthening electricity transmission and distribution networks, facilitating the integration of renewable energy sources, promoting electrification, and accelerating the global energy transition. With decades of research, state-of-the-art laboratories, and a highly skilled team, the Stenungsund facility has long been recognized as a global center of excellence for XLPE materials.
Project 1: Medium-Voltage XLPE Expansion
The first project focuses on constructing a new production unit dedicated to medium-voltage cable insulation grades. This facility will manufacture a new-generation homopolymer XLPE grade that complements Borealis’ existing MV portfolio. The new material is designed to maintain the performance reliability and processing efficiency of current products while offering a reduced carbon footprint due to optimized production techniques.
This expansion will enhance local material availability across the European Union, ensuring a stable and continuous supply for the MV segment. In addition, the facility will support bulk deliveries, further lowering the cradle-to-gate carbon footprint of these materials. Borealis expects the new MV XLPE grades to be commercially available by the first quarter of 2027, strengthening its ability to meet growing European market demand.
Project 2: High- and Extra-High Voltage XLPE Expansion
The second investment targets advanced XLPE grades for high- and extra-high voltage AC and DC cable systems. These systems play a critical role in reinforcing national grids and enabling large-scale power transmission. HVDC technology, in particular, is essential for transporting offshore renewable energy to shore and integrating it into national electricity networks.
As part of this project, Borealis will expand its fully controlled closed-loop production system—from monomer input to final packaging—ensuring exceptional cleanliness and reliability standards required for critical energy infrastructure. Construction is slated for completion in 2026, with commercial rollout expected throughout 2027.
Driving Innovation and Energy Transition
Craig Arnold, EVP of Polyolefins, Circular Economy Solutions, and Base Chemicals at Borealis, emphasizes, “Our ongoing investments in innovation and portfolio optimization allow us to respond to the evolving needs of the energy sector. Expanding Stenungsund reinforces our capacity to supply advanced insulation materials that enable the energy transition through reliable, high-performance power cables.”
This Swedish expansion is part of Borealis and Borouge’s broader “Building for the Future” program, a EUR 200 million initiative to enhance XLPE and semiconductive assets at key European sites. It follows the recent upgrade of Borealis’ semiconductive compounding facilities in Antwerp, Belgium, and complements ongoing investments in Ruwais, UAE. Collectively, these initiatives are set to double Borealis and Borouge’s capability to serve high-demand power cable applications by 2027, supporting the creation of resilient grids for a decarbonized energy future.
