Engaging the value chains

Borouge is a leading provider of innovative plastics  solutions supplying polypropylenes and polyethylenes  to customers all over the world. International Plastics News for Asia (IRNA) interviews Mr. Wim Roels, CEO of Borouge Marketing & Sales Company on the company’s assessment of the market.
 
IRNA: Please provide a general outlook of the polymer industry.

Mr. Roels: Demand for polyolefins is expected to grow at 5-6 percent in 2013 across Asia  with China and India  being the largest and most influential economies. However, the rapid economic growth and demographics as well as the continuing urbanisation in all Asian countries will give rise to a large middle class whose consumption will have an indirect effect on polyolefin demand. For example, India’s urbanisation and greater retail power from its consumers have given rise to a strong domestic demand for extrusion-grade PE as found in food packaging and other flexible packaging sectors. India’s polypropylene film consumption will likely grow at 14-15 percent from April 2012 to March 2013.

An additional key area positioned for growth is the plastic pipe industry. Recent forecasts predict that the global market for plastic pipes will reach $80 billion by 2019. Asia-Pacific is the largest sales market for pipes which represents 50 percent of the global demand. At  Borouge, we expect growth in all sectors we provide plastics solutions for, such as advanced packaging, water and gas pipe systems, wires and cables and automotive components.To meet the increasing demand in polyolefins we are currently increasing our annual production capacity in Abu  Dhabi from presently 2 million tonnes to 4.5 million tonnes by mid-2014.

IRNA: What are some new developments that you are looking to build on? 

Mr. Roels: At Borouge, we are constantly engaging the value  chains of our target market segment to develop new products. This reinforces our innovation capabilities and strategy focused on Value Creation through Innovation. Today, we have an innovation pipeline for new grades and new applications  development. Our products are based on the proprietary Borstar ? technology and some of our products employ the Borealis Nucleation Technology (BNT) - ideal for advanced packaging applications - and others employ Borlink? - a new standard technology in the wire and cable industry.

For example, in food packaging downgauging and weight reduction potential have been the focus for our value chains in both flexible and rigid packaging. Hence, we work closely with converters and brand owners to introduce polyolefin materials to replace traditional materials like glass and tin containers with our differentiated range of polyethylene (PE) and polypropylene (PP) which make more sustainable solutions for the long term. While brand owners tend to focus on sustainability, convertors including the injection moulding machinery manufacturers are more concerned with productivity yield.

Consumers on the other hand are looking for reliable and strong packaging materials. Borouge has developed grades like Bormod BF970MO, Bormod BJ368MO and  Random  RG468MO that  satisfy the variable demands of the value chain especially in food packaging. This year, we are slated to introduce a new grade which leverage on the BNT technology. This new high flow PP has proven to deliver high processability, improved    overall productivity, and most importantly this new grade exhibits good organoleptics which meets the stringent requirements of the food packaging industry in having no taste and odor. We hope to share the eGirls Air Jordan 1