OMV and Borealis extend their cooperation
October 12, 2015 - 1:30 am (CEST)
- Petrochemical cooperation extended for another 11 years
- Continuation of mutually profitable partnership
- Important factor in securing production at Schwechat and Burghausen
OMV, the integrated, international oil and gas company, and Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, are extending their successful cooperation. A cooperation agreement for a further 11 years from 2018 until 2028 is going to be signed.
OMV and Borealis have enjoyed a successful production partnership since 1998 at the sites in Schwechat (Lower Austria) and Burghausen (Bavaria). This cooperation is a key component of the petrochemical integration of OMV’s refineries. Manfred Leitner, OMV Executive Board member responsible for Downstream: "Supplying raw materials for the plastics industry is a key pillar of OMV´s Downstream business. Extending the agreements allows us to continue the success of our profitable partnership with Borealis. In addition, OMV and Borealis are playing a pivotal role in securing production and jobs in Schwechat and Burghausen."
"The extension of our cooperation renews the foundation for competitive polymer production at our sites in Schwechat and Burghausen for another 11 years", said Markku Korvenranta, Borealis Board Member responsible for Base Chemicals. "This also makes an important contribution to securing Europe’s industrial capabilities."
Supplying monomers – ethylene and propylene – remains at the heart of the agreement. These are essential products for the plastics industry and are produced in the OMV refineries Schwechat and Burghausen. They are then processed in the Borealis plants to create polyethylene (PE) and polypropylene (PP). PE and PP are used in a wide range of everyday plastic products and also as high-performance plastics in the automotive and medical technology sectors – a field in which Borealis and its joint venture Borouge are the second-largest suppliers worldwide.
Borealis is owned by the International Petroleum Investment Company (IPIC) from Abu Dhabi (64%) and by OMV Aktiengesellschaft (36%).
With Group sales of EUR 36 bn and a workforce of around 25,500 employees in 2014, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria and a balanced international portfolio. 2014 daily production stood at approximately 309,000 boe/d. In Downstream, OMV has an annual refining capacity of 17.8 mn tonnes and approximately 4,100 filling stations in 11 countries as of end of 2014. OMV operates a gas pipeline network in Austria and gas storage facilities in Austria and Germany. In 2014, gas sales volumes amounted to 114 TWh.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. It generated EUR 8.3 billion in sales revenue in 2014. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% owned by OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).