Abu Dhabi [UAE]: Borouge, a joint venture between Adnoc and Austrian chemicals producer Borealis, has entered into a new agreement to broaden its presence in East Africa and increase the sales of its merchandise. On Wednesday, the company inked the distribution deal with Somochem, which is one of the leading Polyolefin distributors in East Africa. Borouge revealed that this development follows its remarkable advancement in garnering more significant market share in the region.
In 2020, Borouge, a petrochemical company with over 3,100 employees, experienced a surge in sales for their advanced packaging solutions in East Africa, totalling Dh496 million ($135 million), and sales of their energy and infrastructure solutions, which totalled Dh184 million. Borouge has been servicing customers in Asia, the Middle East, and Africa for over 20 years and has a presence in more than 50 countries worldwide.
Borouge provides an array of Polyolefin solutions that cater to various industries such as agriculture, infrastructure, energy, cutting-edge packaging, mobility, and healthcare. In May of the previous year, the company successfully raised $2 billion from an initial public offering and became listed on the Abu Dhabi Securities Exchange. Its inclusion in the FTSE Global Equity Index Series after its IPO provided investors worldwide with an important reference for asset-allocation and portfolio construction decisions.
Borouge boasts a diverse range of products such as Polythene and Polypropylene, which are widely used in an array of industries such as automotive, agriculture, medicine, and sustainable packaging. These polymers play a crucial role in the creation of products such as fittings, pipes, cables, and wires. With a positive outlook on East Africa's economy, Borouge is optimistic about the abundance of new opportunities in the region and plans to capitalize on them.
According to data from the African Development Bank, East Africa's economy is expected to experience a growth rate of 5% in 2023 and 5.4% in 2024. This growth can be attributed to the significant infrastructure investments, improvements in healthcare, increase in living standards, and urbanisation, which have contributed to a surge in market demand. In view of this, the company is set to introduce new and sophisticated packaging solutions in East Africa to cater to the escalating demand for premium products.
Borouge, a leading provider of Polypropylene, has announced a notable increase in revenue for 2022, with a surge of 8%. The company recorded a revenue of $6.72 billion for the 12-month period ending in December, compared to $6.22 billion in 2021. The upswing in revenue can be largely attributed to an impressive 15% increase in total sales volume, a result of the successful expansion of Borouge's production capacity with the addition of its fifth Polypropylene unit. Polypropylene, a versatile thermoplastic material utilized in a range of products including plastics, car parts, and textiles, remains the company's main product.
