LDPE capacity expansion in the Gulf region

 Low density polyethylene (LDPE), is a plastic manufactured through a high pressure method. The primary markets for this plastic include films, carrying bags, and sacks. According to Ceresana Research, about 67% of global LDPE demand falls into these categories. Some examples of these applications include agricultural, multi-layer, and shrink films, as well as reinforcements for levees. LDPE, which is soft, ductile, and flexible, is additionally utilized for strong, elastic goods, such as screw caps, lids, and coatings.
Since it was first produced in 1939, LDPE production has been on the rise as the material is easily processed into films and exhibits particularly excellent rheological characteristics. To date it is still preferred in many regions despite competition from newer polyethylene grades like HDPE and LLDPE. However, the trend of substituting LDPE with other polymers is declining again throughout industrialised nations. Opportunities for LDPE in Western Europe, the US, and Japan can be seen, for example, in coatings and packaging for medical products.
Whilst LDPE prices have fluctuated in the past, and fallen by as much as 30% in certain regions due to declining demand in Western Europe and North America, there is optimism that demand will pick up starting this year, according to Ceresana. The research group sees the Asian Pacific region as the most important LDPE market and will be able to increase its share of global consumption to more than 39%. The Middle East is defined by its continued expansion of LDPE production: capacity increases of around 3.5 million tonnes are planned to take place by 2014. As a result, Saudi Arabia, Qatar, and Iran will become the world's largest exporter of plastics, according to findings by Ceresana Research.

 Capacity expansion by big players
A substantial proportion of LDPE production is expected to come from the Middle East region where output is exported to Asia or other emerging markets. Most of the planned capacity expansion in the Middle East is scheduled to go on stream in the next few years. With global LDPE markets being tight due to the closures of plants in some countries due to production issues and the preference of processors to more specialty grades, researches into new applications of LDPE and LLDPE are underway.
Whilst European producers did not expects their markets to be penetrated by Middle East polymer exporters, the moves of several Middle East companies to establish joint-venture operations in Europe and Asia are manifestations of the trends towards bigger market reach in Europe and Asia. In particular, demand in Asian markets is on the rise with growing number of middle class who prefer convenience foods – thus increasing the need for extrusion-grade LDPE as a packaging material. Borouge and Borealis commit to the increasing global demand for specialty materials. Borealis' high pressure LDPE plant in Sweden was officially inaugurated in June 2010 and a similar plant producing 350,000 tonnes of LDPE per year will be built in Ruwais, Abu Dhabi, as part of the Borouge 3 mega expansion project. The plant in Ruwais will produce cross-linkable polyethylene (XLPE), an innovative plastic solution for low to high voltage energy cables. With an annual capacity of 80,000 tonnes, the unit is an added-value complement to the LDPE unit. When fully operational in mid-2014, Borouge 3 will more than double the plant's annual capacity to 4.5 million tonnes and create the largest integrated polyolefins plant in the world.
Borealis is a leading supplier to the European extrusion coating industry. It offers a wide range of base LDPE, HDPE and polypropylenes for extrusion coating applicationsLevis X Jordan 6