Tue 14-12-2021 13:45 PM
ABU DHABI, 14th December, 2021 (WAM) -- Borouge, a leading petrochemical company providing innovative, value-creating polyolefin solutions, announced on Tuesday a new long-term agreement with ADNOC Logistics and Services (ADNOC L&S).
Through this partnership, ADNOC L&S will manage integrated logistics for Borouge to a new main logistical hub at Khalifa Port and KIZAD in Abu Dhabi.
The new agreement covers transportation and handling operations for Borouge-manufactured polymer products at Khalifa Port for export to international markets, complementing existing agreements between the two companies.
Furthermore, the new agreement will optimise the manufacturing and distribution value chain for Borouge and improve cost per unit, enabling competitive downstream growth of ADNOC’s petrochemicals and polymers business.
Under the terms of the agreement, both partners will harness their strengths to boost the UAE’s In-Country Value (ICV). The new agreement will see 85 percent of its value flow back to the UAE’s economy, accelerating the development of critical local supply chain functions. The partnership highlights the commitment of both partners to prioritise ICV, and power the growth of the UAE economy and its development.
Commenting on the new partnership, Hazeem Sultan Al Suwaidi, Chief Executive Officer of Abu Dhabi Polymers Company (Borouge), said, "Our strategic collaboration with ADNOC L&S is key to realising our growth strategy and ambitions. The expansion of our agreement enables us to unlock further opportunities in the UAE and enhance local supply chains. Together, we are driving synergies to support the UAE’s economic diversification and building on the competitiveness of our national industries."
For his side, Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said, "ADNOC L&S with the support of Borouge, has established a strong track record of delivery across all contracted services. With the inclusion of Borouge’s UAE Gateway agreement, we have an expanded partnership that will cover all of Borouge’s logistics requirements from production site, to feeder vessel services to main port logistics. As part of our smart growth strategy leading up to 2030, we are committed to providing integrated services for our customers, strengthening our position as ADNOC Group’s logistics platform and delivering more efficiency. We will continue to invest in long-term partnerships which generate greater value from our operations within the UAE."
Rainer Hoefling, Chief Executive Officer of Borouge Pte, stated, "The latest agreement will increase our operational efficiencies and strengthen our relationships with our value-chain partners. The partnership plays a critical role in maximising our value proposition and helps us pivot with industry trends. Our collaboration will further develop the delivery of our sustainable and differentiated solutions, to meet growing global customer demands."