Borouge advances $400 million Borouge 4 project, doubling XLPE output to support UAE energy, infrastructure, and global growth demand.
Borouge is moving forward aggressively with its major Borouge 4 expansion initiative, a project expected to significantly strengthen the UAE’s industrial and energy infrastructure while enhancing the company’s global market position. As part of this large-scale development, the company is preparing to deliver the first shipment of cross-linkable polyethylene (XLPE) during the current quarter, marking a major milestone for the project and for the region’s advanced materials sector.
The newly constructed XLPE plant will contribute an additional 100,000 tonnes of annual production capacity. This expansion effectively doubles Borouge’s total XLPE production capability to almost 200,000 tonnes per year. XLPE is a highly specialised material widely used in manufacturing high-voltage underground and subsea power cables. These cables play an essential role in modern power transmission systems, renewable energy integration, and the development of large-scale digital infrastructure such as data centres throughout Asia and the Middle East.
Borouge currently holds a unique position as the only producer of XLPE in the region. This gives the company a strategic advantage as demand for advanced cable materials continues to rise due to rapid urbanisation, energy transition projects, and expanding electricity grids in developing economies. The growing requirement for reliable and efficient power infrastructure is expected to further boost the market for high-performance polyolefin materials.
According to the company, the first production batch from the new facility will undergo detailed performance testing in collaboration with leading cable manufacturers in the UAE. Following successful evaluations, the plant will begin full-scale commercial production. Once fully operational, the facility is expected to supply materials for both medium- and high-voltage cables used in critical energy and infrastructure projects across domestic and international markets.
Hazeem Sultan Al Suwaidi highlighted that the Borouge 4 project continues to make strong progress, reflecting the effectiveness of the company’s partnerships and its focus on operational efficiency. He stated that the completion of the XLPE facility represents a major achievement for Borouge, enabling the company to deliver premium polyolefin solutions that support the UAE’s expanding energy requirements while also meeting growing global demand. He further noted that the company’s strategy of increasing production capacity and deploying advanced technologies positions Borouge for sustained long-term value creation and improved shareholder returns.
The Borouge 4 mega-project is located within the Al Ruwais petrochemicals complex and includes one of the world’s largest Borstar production plants. The development has already generated substantial economic activity within the UAE, directing nearly $600 million worth of procurement orders to local companies. At the height of construction activity, more than 24,000 workers were employed at the project site, underlining its scale and economic significance.
The project also supports the UAE government’s ambitious ‘Operation 300bn’ industrial strategy, which aims to raise the manufacturing sector’s contribution to the national GDP from AED133 billion to AED300 billion by 2031. Operated by Borouge on behalf of ADNOC and OMV, the Borouge 4 expansion is expected to increase the company’s total production capacity by approximately 1.4 million tonnes annually. This would transform Ruwais into the world’s largest single-site polyolefin production complex.
Financially, Borouge anticipates that the project will generate up to $400 million in cumulative net profit within three years following full operational ramp-up. The company estimates that the development could contribute nearly 10% annual earnings growth for Borouge Plc. Additionally, under a newly approved usage agreement, Borouge Plc has secured operational management and marketing rights for Borouge 4. This arrangement provides the company with greater operational flexibility and the ability to maximise long-term returns from the asset without requiring significant upfront capital expenditure.
