The new XLPE plant adds 100 000 tpy of capacity, doubling Borouge International’s current XLPE output in the Middle East and Asia region per year. XLPE is used in high-voltage underground and underwater power cables that support grid expansion, electrification, and the transformation of energy systems. Borouge Plc, part of Borouge International, operates the region’s only XLPE plant of its kind, strengthening its ability to meet rising demand from fast-growing economies and data centres across Asia and the Middle East.
Borouge International collaborated with Ducab, a leading UAE-based end-to-end energy solutions provider and manufacturer of high-quality cables and wires, to test the performance of the initial batch of materials produced at the new XLPE plant. Following the completion of testing, Borouge International is ramping up production at the new plant to deliver material for medium and high voltage applications that will support the global energy transformation and decarbonisation initiatives.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge Plc and Chairman of Borouge 4, said: “The first customer deliveries from our new XLPE plant mark an important milestone in the Borouge 4 growth journey and demonstrate our ability to bring advanced production capacity to meet evolving market demand. By expanding our XLPE production capabilities, we are strengthening our position in high-value energy applications, supporting critical grid and network developments in the UAE and beyond, while continuing to deliver sustainable long-term value for our shareholders.”
As part of the required approval process for any materials produced at the new XLPE facility, Borouge International completed extensive benchmark testing against approved materials from its existing assets. Building on the ongoing collaboration between Borouge International and Ducab, medium and high voltage cables will be manufactured at Ducab’s cable plant where they have been subjected to a rigorous testing programme in accordance with international standards.
Matteo Bavaresco, Chief Executive Officer of Ducab, commented: “Our collaboration with Borouge International on the testing of materials from the new XLPE plant reflects the strength of local industrial partnerships in delivering advanced solutions for critical infrastructure. High-performance XLPE materials are essential to enabling reliable, efficient power transmission, and we are proud to support the introduction of this new regional capacity that will help meet growing demand across the UAE and internationally.”
Borouge International and Ducab’s collaboration has supported landmark UAE developments including Saadiyat Cultural District, Zayed National Museum, Ducab Headquarters, and the Borouge 4 expansion, with future demand expected from major projects such as Palm Jebel Ali. Borouge 4 will be operated by Borouge Plc on behalf of the project’s owners ADNOC and OMV and will boost the company’s production capacity by 1.4 million t to make Ruwais the world’s largest single-site polyolefin complex.
Borouge 4 is expected to generate a cumulative net profit of up to US$400 million over three years, representing approximately 10% annual accretion to Borouge Plc earnings post-ramp-up. Borouge Plc has been granted operational control and marketing rights for Borouge 4 by the project owners via a usage agreement. This framework gives Borouge Plc greater flexibility in managing the asset and in capturing value over time, without requiring upfront capital investment from Borouge Plc.