Borealis @@@


Borealis to build new 350kt PE plant, to add 90kt PP in Austria@


Borealis takes its name from aurora borealis, also known as the northern lights.

The result of the merger of the petrochemicals and polyolefins businesses of Finland's Neste and Norway's Statoil

Borealis' main business is polyethylene (PE) and polypropylene (PP). We are one of the leading producers in Europe and also a significant supplier in key markets around the world. Our head office is in Denmark, just outside Copenhagen.

The Borealis Group produces over 3 million tonnes of PE and PP each year, and employs nearly 5,200 people. The output from our main manufacturing sites and compounding units is plastics raw material that can be found in thousands of everyday products from diapers, food packaging and houseware, to cars and trucks, pipes and power cables.

Borealis' foundation for growth is Borstar, an innovative technology developed by us which offers PE and PP materials that are stronger and more easily processed than conventional materials.


A New Star in the Petrochemicals Sky

The official start-up of Europe's newest major petrochemicals and polyolefins company, Borealis, took place today. The result of the
merger of the petrochemicals and polyolefins businesses of Finland's Neste and Norway's Statoil, Borealis represents the single most important step forward yet in the restructuring of the industry in Europe. Borealis is also the largest industrial merger between Nordic companies to date.

The combination of the technology and market strengths of Neste with the feedstock and financial resources of Statoil will create a dynamic, highly focused, and synergy-rich company that will be stronger than either company's businesses alone.

An initial letter of understanding was signed by the two companies in June last year. Following the successful completion of merger talks in what is probably record time for a deal of this scale, the final agreement setting up the new company was signed in Copenhagen on January 10 this year.

Owned on an equal basis by Neste and Statoil, Borealis will be headquartered in Copenhagen from June onwards; up until then, senior management will be located in Brussels. Production is based at sites in Belgium, Finland, France, Germany, Norway, Portugal, Sweden, and the United States. Research and development takes place at facilities in seven countries; while sales is handled by a network of sales companies in 14 countries. The Borealis Group employs over 6,000 people and is projected to have net sales in the order of USD 2.4 billion during its first year of operation. The geographical spread of its activities gives Borealis a particularly powerful presence in its key markets. The new focus provided by the combination of the proven strengths of its two parent companies will help make Borealis one of the leading companies in what is a very competitive industry.

I believe we have the technology, the plants, the performance, and the people to make Borealis a true industry leader; and to deliver on our commitment t o working with our customers to give them the products and the service they need," says Borealis' Chairman and CEO, Juha Rantanen.

Borealis is Europe's largest polyolefins producer and the world's fifth largest; and a powerful player in petrochemicals. Its integrated production base spans petrochemicals, polyethylene and polypropylene, and polymer components. Production capacity in polyolefins totals 1.5 million tia of polyethylene and 650,000 tla of polypropylene.

July 15, 2003 Financial Times

Austria/ new polyethylene plant and extra polypropylene capacity for Borealis.

Borealis has announced that it is to spend EUR 200 M on extra polyolefins capacity at Schwechat, Austria. A new
350,000 tonnes/y polyethylene plant is due online in 2005, using the Borstar process, enabling 3 older polyethylene production lines to be closed. The capacity of a polypropylene plant on the site is to be increased by 90,000 tonnes/y. According to the chief executive of Borealis, the site at Schwechat will be a world scale site for polyolefins production, with 1 M tonnes/y capacity. Borealis owns 25% of OMV's vapour cracker (for which a capacity increase has been announced) on the site. According to the polyolefins manager, the polyethylene from the new plant will be high performance, suitable for many uses including flexible packaging films and high pressure pipes. This should bring Borealis shares in new markets. The Borstar process brings savings in catalyst use and energy consumption. The item lists Borealis' other Borstar production capacities worldwide, totalling 1.75 M tonnes/y.

2003/9/16 Borealis

First polypropylene product made from natural gas

As a result of co-operation between Lurgi, Statoil and Borealis, the world
fs first Borstar® polypropylene cups have been created using propylene from Lurgifs new MTP® (Methanol-to-Propylene) process.

Up to now propylene has mainly been produced as a co-product with ethylene from steam crackers using various petroleum feedstock. In search of additional feedstock sources to satisfy the growing demand for propylene and polypropylene, research is now concentrating on new processes involving alternative raw materials. One of these is the MTP (Methanol-to-Propylene) process developed by Lurgi, which uses methanol as a feedstock obtained from natural gas. The raw propylene can easily be converted to a high-purity polypropylene.

Lurgi proved the viability of the process at an MTP demonstration unit, operated jointly by Statoil and Lurgi, at Statoil
fs methanol plant in Norway. To confirm the quality of the propylene obtained in the demonstration unit, samples were sent to Borealisf Innovation Centre in Ronningen, Norway. Here, it was successfully polymerised with Borealisf proprietary Borstar process to polypropylene that met all specifications, and converted into thermoformed cups. After having demonstrated the high quality of the propylene, Lurgi is now in a position to offer the MTP process on a commercial scale.

gThis is truly an innovation. We are pleased that the MTP process now offers an alternative feedstock to petroleum based propylene, in case this becomes relevant for us,h says Staffan Lennstrom, Executive Vice President Hydrocarbons Business Group. gIn this case Borealis offered our polymerisation facilities and know-how to evaluate the MTP produced propylene. Participation in research and evaluating alternative routes to cost-efficient feedstock is a must in our strategy of being a leading, integrated, profitable polyolefins supplier. g

Borstar is a registered trademark of Borealis A/S, Denmark.

MTP (Methanol-to-Propylene) is a registered trademark of Lurgi AG, Frankfurt am Main.


Platts 2003/10/22

Borealis to expand LLDPE capacity by 80kt/yr at Porvoo, Finland

Scandinavian polyolefin producer, Borealis, would increase its linear low density polyethylene production capacity at its Porvoo facility, Finland, by 80,000 mt/yr, a company source said Tuesday.

2004/6/17 Borealis

Borealis expands polypropylene plant and Noretyl JV cracker in Norway

Borealis will expand its Noretyl ethylene cracker, a 50:50 joint venture with Hydro Polymers at Rafnes with 100,000 tonnes, and debottleneck its own polypropylene plant at Ronningen. The two Norwegian projects will be completed in the autumn of 2005.

gTo meet our customers rising demand for enhanced polyolefin plastics for film, fibre and moulding, we will debottleneck our Norwegian polypropylene plant in connection with the expansion of the Noretyl ethylene cracker,h Roy Vardheim, General Manager Borealis Norway explains. The annual polypropylene production capacity will increase from 105,000 to 175,000 tonnes. The engineering part of the project, which started early June 2004, is handled by Jacobs Engineering.

On June 16 Noretyl AS signed a contract with Linde AG, Germany, to carry out the project to expand the cracker to about 550,000 tonnes per year in connection with a planned turnaround. The investment will amount to NOK 600-700 million (approx. EUR 70-85 million). The boost of the cracker
fs capacity will increase the supply of ethylene and propylene to the two cracker-ownersf nearby downstream plants.

Staffan Lennstrom, Borealis
f Executive Vice President for Hydrocarbons adds that gthe Noretyl cracker expansion enables us to increase our own feedstock production, an important step in our strategy of becoming a leading, profitable integrated polyolefins supplier.h

Noretyl AS @@@

Noretyl AS owns and operates the Ethylene plant (cracker) at Rafnes*. The Ethylene plant started up in 1977.
(* adjacent to Hydro Polymers' Rafnes plant)
Noretyl AS was established 1. January 2001 and is owned by Hydro and Borealis with 50% each. The owners are responsible for providing feedstock and selling products. The mainproducts are used as raw materials in the owners production of VCM, polyethylene and polypropylene.

Feedstock: Ethane, propane and butane
Main products: Ethylene and propylene
Capasity: 450 000 tons ethylene and 68 000 tons propylene per year
By-products: Crude C4's pyrolysis gasoline and pyrolysis oil
Employees: 165

1997/9/15 Borealis

Borealis plans to acquire PCD, welcomes new owners

Borealis, Europefs leading producer of polyolefins plastics, today announced plans to acquire PCD of Austria. According to the memorandum of understanding, Borealis will acquire PCD from its current owner, OMV, as of January 1, 1998. The acquisition is related to another move announced today regarding the future ownership structure of Borealis.

Neste has disclosed plans to sell its 50% shareholding in Borealis to International Petroleum Investment Company (IPIC) of Abu Dhabi, and OMV, the integrated Austrian oil and gas company. IPIC and OMV will each have a 25% shareholding; Statoil will retain its 50% shareholding. With some 1,000 employees, PCD produces approximately 445,000 t/a of polyethylene and 410,000 t/a of polypropylene at sites in Austria and Germany.

PCD also has compounding facilities in Austria and Italy, a network of sales offices across Europe, and extensive R&D activities in Austria. PCD provides Borealis with additional competitive production capacity and market coverage in central and south eastern Europe. Borealis will also benefit from PCD
fs marketing and technological expertise, especially in polypropylene and engineering applications. As one part of the acquisition, Borealis will enter into an agreement with OMV for the long-term supply of olefin feedstocks to the PCD sites from OMVfs crackers at Schwechat, Austria and Burghausen, Germany. With the integration of PCD, Borealis further secures its position as Europefs leading producer of polyolefins. It will produce over three million tonnes of polyolefins annually and employ some 6,000 people.

According to Borealis CEO Juha Rantanen,
gThe acquisition of PCD further strengthens Borealisf position as Europefs leading polyolefins company. This is good not only for Borealis and our customers, but also for the entire European plastics industry. Having fewer and stronger players in Europe ensures the plastics industryfs long-term competitiveness in this challenging global market.h Borealis Chief Financial Officer, Svein Rennemo, who will become CEO on November 1, said, gWe welcome IPIC and OMV as new owners. Together with Statoil, they offer Borealis an international ownership base, as well as competitive feedstocks.

The new ownership structure very well supports Borealis
f long-term growth and development ambitions.h Borealis is the largest producer of polyolefins in Europe and the sixth largest in the world. It was created in 1994 through a merger between the petrochemicals businesses of Neste of Finland and Statoil of Norway. Borealis has production sites in Belgium, Finland, France, Germany, Norway, Portugal, and Sweden. It has a network of sales companies covering Europe and Asia, a production and marketing joint venture in the USA, and plans for a production and marketing joint venture in Abu Dhabi. Borealis had a turnover in 1996 of DKK 15.9 billion. The above mentioned transactions are subject to several conditions including corporate and regulatory approvals. It is expected that definitive agreements will be signed before December 31, 1997.

2005/6/30 Borealis

Change in Borealis ownership structure underpins future growth

The International Petroleum Investment Company (IPIC) of Abu Dhabi and OMV Aktiengesellschaft of Austria have announced today their agreement to purchase Statoilfs 50% shareholding in Borealis A/S.

As a result, the new Borealis ownership will be
65% IPIC and 35% OMV. Statoil will continue as a major long-term feedstock supplier to Borealis.

Dr. Gerhard Roiss, Deputy CEO of OMV, will be the Chairman of Borealis A/S. Closing of the transaction is expected during the fourth quarter once regulatory approvals are received.

Commenting on the new ownership structure, Borealis
f Chief Executive John Taylor said, gBorealis has successfully completed a major transformation of the company over the past four years. We continue to be committed to being a leading, innovative provider of plastics solutions to our customersh.

He added,
gI am enthusiastic about this change in ownership as I believe it will provide the opportunity to further strengthen the company in its implementation of our value creation strategy launched in 2001.h

IPICfs Managing Director, Mohamed Al Khaily, stated that, gIPICfs increased ownership in Borealis will further deepen the ties between Borealis and Borouge providing an even stronger foundation for continued growth in the Middle East and Asia.

He added,
gOur increased investment in the company is testament to the rewarding partnership we enjoy with Borealis and OMV. We are very pleased with Borougefs developments over the last three and a half years, especially with the potential of the BorstarR PE technology benefits to penetrate key differentiated growth market areas such as pipe and enhanced film applications.h

From OMV, Dr. Gerhard Roiss said, gThis change in ownership will enable Borealis to further develop integrated investment opportunities with its owners as well as exploring additional routes to achieve profitable growthh. He emphasized, gI am particularly keen to reinforce Borealisf Research and Development capabilities as an integral part of their strategy to create and deliver value to their customers.h

Statoil Chief Executive Helge Lund explained, gWe are selling our interests in petrochemicals because this no longer forms part of our core business. The sale to IPIC and OMV also represents a good industrial solution for Borealis. As a responsible owner, Statoil has participated in developing Borealis industrially and financially to reach the strong position it occupies today.h

John Taylor concluded, gI eagerly look forward to the continuing development of Borealis as an independent company under our new ownership structure. I would like to thank all our customers, suppliers and employees for their active involvement and support in our past successes. Together we will continue to actively pursue our vision of Shaping the Future with Plastics.h

2006/12/28 OMV

OMV and IPIC to bundle chemistry activities into subsidiary Borealis

EOMV and IPIC intend to incorporate their holdings in AMI Agrolinz Melamine International into their joint subsidiary Borealis within the first half of 2007
EChanges in the AMI Supervisory Board as of 1 January 2007
EOMV continues to focus on core business

OMV, Central Europe's leading oil and gas group, continues to focus on its core business: Exploration & Production, Refineries & Marketing and Gas. In this context OMV, together with its core shareholder IPIC, is planning on incorporating
AMI Agrolinz Melamine International GmbH (AMI), one of the leading producers internationally of melamine and plant nutrients, into Borealis. OMV and IPIC each hold 50% of AMI. The final decision will be made in the course of the first half of 2007. Borealis is Europe's second largest producer of plastics and is headquartered in Vienna. As a holding company, Borealis will provide excellent support for AMI's further international expansion. AMI's headquarters will remain in Linz (Upper Austria).

Gerhard Roiss, OMV Deputy Chairman and Borealis Supervisory Board Chairman, commented: "The bundling of AMI's expansion strategy into Borealis will be a good solution for Borealis and AMI, whose businesses complement each other. Thanks to Borealis' ownership structure - OMV owns 35% and IPIC 65% - AMI's future development will continue to be supported and developed by experienced strategic partners."

For OMV this has the advantage that its strategic focus on its core business will be further strengthened, while at the same time OMV will profit from the growing plastics market enhanced by the assets of AMI via its investment in Borealis. Overall, this measure constitutes the last step in AMI's strategic repositioning, which
started in May 2005 with IPIC's acquisition of 50% of the company.

Strong solution
The incorporation of IPIC and OMV's 50% of AMI into Borealis represents a strong combination of AMI's and Borealis' fields of business and operative synergies. Both companies are well positioned in their respective markets in Europe and are in the process of strengthening their growing presence in the Middle East. Borealis and AMI are utilising the favourable raw material prices in this region and the region's proximity to the rapidly growing markets in Asia. Borealis already holds a competitive position with the plastics production site Bourouge in Abu Dhabi with a capacity of 600,000 tons per year. The extension of Borouge will add another yearly capacity of 1.3 mn tons of polyolefins and is expected to go on stream in 2010.

The establishment of a
production facility for melamine in Ruwais- also located in Abu Dhabi - is being pursued by AMI and ADNOC. This site will have an annual capacity of 80,000 tons. In 2005 the AMI Group had a workforce of around 1,000 and sales of EUR 470 million. Borealis had sales of EUR 4.8 bn and a workforce of 4,543.

Changes in AMI Supervisory Board
The AMI Supervisory Board will be newly appointed as of 1 January 2007: Gerhard Roiss, OMV Deputy Chairman and Borealis Supervisory Board Chairman, will take over the position of AMI Supervisory Board Chairman from OMV Chairman Wolfgang Ruttenstorfer. In addition, Mohammed Al-Azdi (IPIC representative in Borealis' Supervisory Board) and John Taylor, Chairman of Borealis, will be appointed to the AMI Supervisory Board.

AMI remains an Austrian company with international expansion
For AMI, the new ownership structure will provide the advantage of being able to advance its international expansion together with one of the world's leading plastics producers. Furthermore, AMI's headquarters will remain in Linz ? this location is also being substantially upgraded to Borealis' international research centre in close cooperation with the Province of Upper Austria. No changes are planned in the AMI company structure or with regard to its highly skilled workforce. As Borealis' and AMI's businesses complement one another, these plans constitute an advantage for AMI, both in its entirety and for its employees.

AMI Agrolinz Melamine International GmbH

AMI Agrolinz Melamine International GmbH is a 50% owned OMV and IPIC (International Petroleum Investment Company) subsidiary, which upgrades natural gas into high-value agricultural and industrial raw materials. The company's main products are melamine and plant nutrients. In the melamine sector, AMI is the market leader in Europe and the global number two. It also occupies a leading ranking in the plant nutrients market in the Danube region.

The AMI Group consists of the core companies
AMI Agrolinz Melamine International GmbH, located in Linz (A), the fully owned subsidiary Agrolinz Melamine International Italia S.r.l., based in Castellanza (I), the Agrolinz Melamine International Deutschland GmbH located in Piesteritz / Saxony-Anhalt and the Trading Company for fertilizers LINZER AGRO TRADE GmbH, sales companies in Hungary, the Czech Republic and Slovakia, as well as the sales companies Agrolinz Melamine International North America Inc., Chicago, USA and Agrolinz Melamine International Asia Pacific Pte Ltd., Singapore. The AMI Agrolinz Melamine International Group has a workforce of around 1,000 and sales of EUR 394 million.

Everything started with nitric acid!
Linz has been a location for large-scale, industrial chemicals production for 60 years.
The beginning was formed by Stickstoffwerke Ostmark AG (renamed in 1946 as Osterreichische Stickstoffwerke AG and in 1973 as Chemie Linz AG), which utilized the coke oven gas produced by the neighboring "Reichswerken Hermann Goring" iron and steel plant.

During the post-war economic boom, the plant gradually expanded its production. Fertilizer production developed into Agro-Chemie, which manufactured a wide range of agricultural pesticides, growth regulators and animal feed additives. Using nitrogen as a basis, Chemie Linz AG extended its program to include acrylonitrile, urea and melamine, for which a new and highly attractive process was created.

Furthermore, the Linz chemical industry attained an international standing in the area of organic chemicals. Pharmaceuticals also have long traditions in Linz. Apart from an extensive program of medicines, Chemie Linz AG developed an international business with active substances, intermediate products and fine chemicals.

Research and development was and is the core of company activities. In addition, application technology, project planning and realization, as well as certain engineering services are provided in the Linz Chemiepark. The result is a pool of experience and know-how, which now extends from basic products to performance chemicals.

Specialization and a concentration on core business are modern business maxims, which in combination with intensified competition have given the Upper Austrian chemicals industry location a completely new face. The Chemiepark has evolved from the multi-divisional Chemie Linz AG and now provides a home to around 40 companies, which take full advantage of the location synergies.

2007/1/15 Borealis

Borealis invests EUR 90 million to further develop its polypropylene business

Borealis, a leading provider of innovative, value creating plastics solutions, will invest EUR 25 million to expand the capacity of its PP plant in
Porvoo, Finland, by 65,000 tonnes per annum (tpa) to 220,000 tpa by the end of 2008. The increased capacity will meet rapidly growing customer demand for innovative plastics solutions in the pipe and advanced packaging markets and better supply the developing Russian market.

Borealis will also invest EUR 35 million to create a four-reactor configuration at its Borstar(R) PP plant in
Schwechat, Austria, to support the production of superior materials that meet the needs of the automotive, pipe and advanced packaging industries. The plant is well positioned to take advantage of the expanding automotive markets in Central and Eastern Europe. The additional gas phase reactor will be operational during 2009.

In addition, Borealis will invest EUR 30 million in a four-reactor Borstar(R) PP pilot plant at Schwechat that will strengthen the company
fs ability to readily develop innovative, advanced multimodal PP solutions. The pilot plant will be completed in 2009.

* at Schwechat, Austria with a combined capacity of 435,000 mt/year.

gWe are increasing our capacity in Europe to be able to provide an exciting range of polypropylene solutions for the infrastructure, automotive and advanced packaging markets,h says David Rolph, Borealis Executive Vice President Polyolefins. gOur strategy is Value Creation through Innovation and these additions to our asset capability will provide advantages for the entire value chain.h

Wim Roels, Borealis Vice President Innovation & Technology comments: gIn addition to these asset investments in polypropylene, the ongoing investment in innovation centres and polymer expertise demonstrates our commitment to maintain our leadership position for the benefit of our customers.h

Borealis recently announced that it is expanding its plant at Burghausen in Germany to manufacture 330,000 tpa Borstar(R) PP.

2007/3/21 Borealis

Borealis announces EUR 370 million investment for the wire and cable market
@Borealis invests EUR 370 million in its wire and cable business
@New 350,000 t/y low-density polyethylene (LDPE) plant
@Modernisation and streamlining of compounding
@Shutdown of old 230,000 t/y high-cost polyethylene capacity

Borealis, a leading provider of innovative, value creating plastics solutions, will invest EUR 370 million in Stenungsund, Sweden, enhancing its capability to provide advanced materials for the growing wire and cable market, as well as for the Nordic packaging market.

The project, due for completion at the end of 2009, includes
a new 350,000 t/y high-pressure LDPE plant, modernisation and streamlining of compounding, and related material handling facilities. 230,000 t/y of old, high-cost polyethylene capacity will be shutdown.

This significant investment builds upon the cross-linkable polyethylene (XLPE) capacity coming on stream during the second half of this year. It also reinforces Borealis
f commitment to the wire and cable industry and the development of infrastructure systems that ensure safe and reliable electricity supplies to consumers and industries.

gWith well-known brands such as Supercure(R) and Visico(R), Borealis is already an established provider of high value added materials for wire and cable infrastructure applications,h says Borealis Polyolefins Executive Vice President David Rolph. gInvestment is essential for value creation in this business. We are building on our leadership and experience in the wire and cable, and advanced packaging markets, to provide advantages for the entire value chain.h

This investment will also enable us to maximise the flexible feedstock-olefin-polyolefin integration at Stenungsund and, by improving our overall asset competitiveness, ensure long-term, profitable growth for the site,h adds Borealis Scandinavia General Manager Roy Vardheim. The total polyethylene capacity at Stenungsund will increase from 580,000 t/y to 700,000 t/y, making it a leading world-scale facility for advanced infrastructure applications.

2007/6/5 Borealis

Borealis sells its petrochemical business in Norway to Ineos

Sale of Norwegian polyolefins business and share in Noretyl gas cracker to Ineos
Creation of independent innovation company
Group support functions remain in Norway as a separate unit

Continuing with the restructuring of its Norwegian operations, Borealis AS announces that it has reached an agreement
to sell its petrochemical business in Bamble, Norway, to Ineos for EUR 290 million. It has also been decided to create a new independent innovation company to take over its innovation centre in Bamble and to retain the existing group support functions at the location as a separate unit.

The facilities sold to Ineos comprise a
175,000 tonne per year (t/y) polypropylene (PP) unit and a 140,000 t/y low density polyethylene (LDPE) unit, as well as a 50% share of the 557,000 t/y Noretyl gas cracker. The polyolefin units manufacture plastics mainly for the growing moulding, film and fibre, and extrusion coating industries in Northern Europe.

hThe sale of our Norwegian polyolefins business is another step to increase the overall competitiveness of our European operations,h comments John Taylor, CEO of Borealis. hWe wish all our Norwegian colleagues a successful future with Ineos as their new owners.h

The addition of these facilities to our other recent investments in the region will enhance operational efficiencies and substantially improve our position in the olefins and polyolefins market, enabling us to better serve our customers and progress our strategy in Europe,h says Jim Ratcliffe, Chairman of Ineos. hThis acquisition presents important opportunities for us to support existing assets in the Northwest European ethylene network. These are well placed assets, complemented by an experienced operations team and high safety, health and environmental standards. This acquisition is perfectly timed and provides a significant step forward in the development of Ineos.h

An estimated 290 out of 450 Borealis employees are affected by the sale of the operations to Ineos. The remaining employees will move to the newly formed innovation company or provide support to the group. All 165 employees at the Noretyl cracker joint venture will be employed by Ineos once the transactions involving Ineofs purchase of Borealisf and Norsk Hydrofs polymer assets are completed.

The sale of Borealis
f assets to Ineos is subject to clearance by EU competition authorities and other relevant anti-trust bodies, and is expected to close in the third quarter of 2007.

A joint Borealis/Ineos press conference will take place June 5 at 13.00 CET at the Borealis site in Bamble, Norway.


Borealis evaluates possible closure of HDPE plant in Norway

In an extraordinary Board meeting in Borealis AS today, it was decided to inform the Borealis AS Supervisory Board in an extraordinary meeting February 13 about the ongoing evaluation of the future of the Borealis high density polyethylene (HDPE) plant in Bamble, Norway. A potential closure of the plant in 2006 is one of the options being considered.

Borealis is continuously aiming to strengthen and improve the competitiveness of its European operations. In todayfs polyolefins business, HDPE is one of the toughest markets to be in.

Despite our efforts to improve the situation, the Norwegian plant is the least competitive of the HDPE plants in the Borealis Group incurring losses over the last few years. The future industry outlook is challenging, particularly in view of significant capacity increases in the Middle East, which will come on stream in the next few years. We will continue to look for future cost competitive feedstock in Norway.

The HDPE plant in Norway is one of three production units in Bamble, 160 kilometers southwest of Oslo. The plant started up in 1979 with a capacity of 50,000 tonnes per year and after several debottleneckings, the capacity is today 110,000 tonnes per year. The main products are in the areas of blow moulding and rotomoulding e.g. materials for bottles and leisure boats.

Borealis in Norway has 500 employees of which about 300 are linked to the operation of the production units. The innovation centre and various support and Group functions total about 200. A possible closure of the plant will affect about 100 employees in Norway.

A consultation process with employees and their organisations will now be initiated. Once the evaluations and consultations are complete, the Board will present a final recommendation to the Borealis AS Supervisory Board for decision in an extraordinary meeting planned March 13, 2006.

2008/9/10 Borealis

OMV and Borealis: Significant expansion of Burghausen site for leading position in petrochemical industry
* OMV and Borealis invest EUR 840 mn in the expansion of their petrochemical production capacities
* Increase of ethylene production to 450,000 t per year; increase of propylene production to 560,000 t; increase of polypropylene production to 570,000 t
* New plants successfully on stream with the implementation of the innovative Borstar(R) and metathesis technologies
* Expansion of polypropylene capacities to address growing demand for advanced packaging products and medical applications
* Inauguration Ceremony on September 10, 2008 under the patronage of Emilia Muller, State Minister of Bavaria for Economy, Infrastructure, Transportation and Technology

In November 2006, OMV Aktiengesellschaft first announced their EUR 1.1 bn investment in Bavaria. So far EUR 640 mn have been invested in Burghausen refinery and an additional EUR 200 mn were invested by Borealis in the expansion of their neighbouring plastics production facilities. Since the successful OMV shutdown in 2007, the production and conversion of petrochemical base chemicals into innovative plastics products on the premises of OMV and Borealis have been flawlessly coordinated. OMV has increased the ethylene production by 110.000 t to 450,000 t per year and the propylene production by 315.000 t to 560,000 t. The boost of the polypropylene production by 330.000 t to 570.000 t has increased Borealisf polyolefin capacities to 745,000 t in total. Thus, Burghausen has become the ninth largest polyolefin site and the third largest polypropylene site in Europe. By acting as the patron of the Inauguration Ceremony, Minister of State for Economy Emilia Muller recognises the innovative technologies and the potential to supply the plastics industry, which are two priority areas for the highly integrated Burghausen site.

OMV achieved these capacity expansions with the construction of the new metathesis plant, the expansion of the ethylene plant as well as the construction of a major cracker furnace. Borealis expanded its polypropylene production by integrating an additional BorstarR polypropylene plant on their premises in Burghausen. Development started in 2006, and the plant started up in spring of 2008 after a major OMV shutdown for the integration of the new components.

The ethylene and propylene plants as well as the polypropylene production plant are running smoothly and provide reliably the production output as planned. Following a routine optimisation phase it will now be possible to operate at more than nameplate production capacity in several new plants.
Application of innovative technologies

Especially the innovative metathesis plant, the first of its kind in Europe, was successfully integrated into the refinery system within a short period of time, despite a lack of prior experience. The production of petrochemical base materials is exceptionally efficient using metathesis. Today, this environmentally friendly method is considered one of the most significant innovations in recent years, causing a revolution within the chemical industry. On the one hand, less technical input is needed than with other conventional technologies; on the other hand, propylene production consumes 50% less energy.

OMV Deputy Chairman Gerhard Roiss:
gThe OMV refinery in Burghausen with its focus on the petrochemical sector holds a special position within Germanyfs refinery industry. With the current investment a third of the production goes into plastics - apart from the classical target markets mobility and heath. By doing so, we achieve a significant increase of the refineryfs value creation. We are already the main supplier for mineral oil products in Southern Germany, and we assume a strong position in Europe after the massive expansion of our ethylene and propylene production. Our EUR 1.1 bn investment in Bavaria has paid off both for us and for the business location Burghausen providing us with excellent perspectives for the future.h

Simultaneously with the OMV petrochemical plant expansion Borealis, which is directly connected with the OMV refinery, expanded its capacities, by 80% from 415,000 to 745,000 t of polyolefin per year. Based on the proprietary BorstarR technology, the plant converts highly pure OMV propylene produced by metathesis into polypropylene, a multi-purpose plastics material. These newly developed materials facilitate the design of innovative plastics that open up new areas for applications such as specialised medical appliances and advanced packaging for the food industry. In addition, Borealis lives up to its commitment to energy efficiency and protection of the environment. The innovations in process design and the implementation of the Borealis-owned catalyst technology allow for energy savings of 16,000 MWH per year as well as for an increase in energy efficiency of 20%. The plant is one of the most advanced facilities of its kind worldwide.

Borealis Chief Executive Mark Garrett has confidence in the innovation strength of the company:
gOur strategy is based on adding value to our products for our customers and our customerfs customers. We refer to this as gValue Creation through Innovationh. We work closely together with all our partners throughout the value chain to understand their specific needs and to provide them with innovative, value-creating plastics solutions. The production plays an integral role in this as our customers are entitled to expect a consistently reliable supply of high-quality polyolefins. With our new plant in Burghausen, the next stage of our unique patented BorstarR technology goes on stream, and we are very proud of it.h
Focus on petrochemical applications as an advantage of location

The mineral oil market has undergone a rapid change over the last few years, with increasing importance of propylene and ethylene extraction from crude oil. As base materials for a wide range of chemical and petrochemical products, propylene and ethylene play a key role in the chemical industry and are experiencing increased demand. OMV continuously invests in this area, producing more propylene and ethylene and therefore creating more value compared to conventional refinery products. Due to forecasts predicting higher production capacities and as one of the major suppliers, OMV creates substantial value at the Burghausen site to strengthen the Bavarian Chemical Triangle and the Southern German plastics industry. With well-directed investment programmes for the existing refinery sites, the group consistently executes its corporate strategy of expanding its petrochemical production.

After the kickoff of the 360 km Ethylene Pipeline-South (EPS) between Munchsmunster and Ludwigshafen expected for 2009, OMV will be linked to the Western European ethylene network as well. The strategically important connection between the southeast Bavarian Chemical Triangle and the significant northwest European ethylene network around Ludwigshafen will then be established. The company will be able to react even more flexibly to market volatility and can ensure the greatest possible supply security. The EPS will effectively secure the competitiveness of the Burghausen site.

OMV currently plans a 800 MW combi-cycle power station for the generation of electricity and steam for the Burghausen refinery. This is an important step towards both an extension of the value added chain from gas to electricity and the securing of the location. The feasibility study on hand concerning this power station project came to a positive conclusion. With the integration into the refinery the efficiency will be further increased by 5 % on average - and the energy consumption will be significantly reduced. The synergies achieved will be an improved environmental protection and a higher profitability. The decision regarding the investment should be made by the end of 2008. 2012 would thus be the earliest start-up date.

Borealis is leading provider of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique BorstarR technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible CareR and to leading the way in 'Shaping the Future with Plastics'?.

OMV Aktiengesellschaft
With Group sales of EUR 20.04 bn and a workforce of 33,665 employees in 2007, as well as market capitalization of approx. EUR 13 bn, OMV Aktiengesellschaft is one of Austria
fs largest listed industrial companies. As the leading oil and gas group in Central Europe, OMV is active in Refining and Marketing (R&M) in 13 countries. In Exploration and Production (E&P) OMV is active in 20 countries on five continents. In Gas & Power (G&P) OMV sells more than 13 bcm gas per year. Via Baumgarten, one of the most important turntables for gas in Europe approximately 64 bcm gas is transported annually. OMVfs Central European Gas Hub is amongst the three largest hubs in Continental Europe.

OMV is the largest oil and gas group in Central Europe, with oil and gas reserves of approx. 1.22 bn boe, daily production of around 316,000 boe and an annual refining capacity of 26.4 mn t. OMV now has 2,527 filling stations in 13 countries. The market share of the group in the R&M business segment in the Danube Region is now 20%.

OMV further strengthened its leading position in the European growth belt through the acquisition of 41.30% of Petrol Ofisi, Turkey
fs leading company in the retail and commercial business.

In June 2006, OMV has established the OMV Future Energy Fund, a wholly owned subsidiary to support projects in renewable energy with more than EUR 100 mn to initiate the change from a pure oil and gas group to an energy group with renewable energy in its portfolio.

OMV: Corporate Social Responsibility (CSR)
OMV is a member of the U.N. Global Compact and actively committed to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment in economically weak regions. OMV works hard to address economic, environmental and social issues related to its operations. Its CSR activities are fully documented in biannual performance reports compiled according to Global Reporting Initiative guidelines. The "Global 100 Ranking" presented at this year
fs World Economic Forum in Davos ranks OMV as one of the six most sustainable energy companies worldwide.

2008/11/10 Basell

LyondellBasell grants Lupotech T license to Borealis

Borealis AG has selected LyondellBasell
fs Lupotech T technology for a new 350 KT per year low density polyethylene (LDPE) plant; start-up is expected in 2013.

gThis investment is an important step in our growth strategy and our selection of LyondellBasellfs LDPE technology supports this positionh said Alfred Stern, Vice President Innovation & Technology at Borealis, during the signing ceremony. g

Lupotech T provides best-in-class operating performance and combined with Borealisf own, film and wire & cable technology, we can build on our leadership in value creation in Asia and the Middle East.h

Just Jansz, President of LyondellBasellfs Technology Business, commented: gThis is our second polyethylene process technology licensed to Borealis in the last three years, which builds upon a solid relationship that will continue well into the futureh. Jansz further added: gLupotech T, now with a total of eight million tonnes per year of licensed capacity, is the clear market leader in high pressure tubular LDPE technology.h

Key features of Lupotech T technology include low manufacturing and investment costs, fast start-up and grade changes, and a broad product portfolio, which make it todayfs technology of choice for the world-scale production of LDPE and EVA copolymers.

The location has yet to be decided. It is the second LyondellBasell license taken by Borealis in the past three years.