A consortium comprising UAE’s Borouge Plc, ADNOC and Austria’s Borealis has initiated a joint feasibility study for a proposed greenfield speciality polyolefins complex in China.

The consortium has signed a project collaboration agreement with China’s Wanhua Chemical and Wanrong New Materials (Fujian), a subsidiary controlled by Wanhua Chemical, Borouge said in a statement published on the Abu Dhabi Securities Exchange on Tuesday.

The proposed complex in Fuzhou, Fujian Province, is forecast to produce 1.6 million tonnes per annum (MTPA) of speciality polyolefins.

The consortium plans to establish an equally owned Sino-foreign joint venture with Wanrong New Materials (Fujian), subject to customary regulatory approvals.

The final structure of the project and financial commitments will be confirmed following the completion of the feasibility study. It will also explore using artificial intelligence (AI) solutions to support automated plant operations.

The planned specialty polyolefins complex will be powered by 100% zero-carbon electricity.

Asia is a hub for polyolefin demand, with China accounting for 40% of global consumption. Almost 30% of Borouge’s revenue is derived from China, the statement said.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)