Borealis invests and disinvests

For the full 2009 Borealis announces a net profit of 38 million euro, compared to 239 million euro in 2008. The company's performance was affected by the economic crisis, which hit with full force in 2009, causing a significant downturn in consumer and industry demand and placing polyolefin margins under pressure, as well as costs incurred due to the start-up of the LDPE plant in Stenungsund (Sweden), the company's largest investment in Europe, for the production of 350,000 ton/year of LDPE. According to expectations, this structure, nevertheless the difficulties, will further strengthen Borealis's capabilities to meet the needs of the growing wire and cable markets. Borouge's contribution in 2009 was also impacted by the economic crisis and costs related to the upcoming start-up of Borouge 2. The start-up of this latter is planned for the middle of the year to triple the annual production capacity of PE and PP to 2 million tons. Concurrently, the Borouge 3 projects gains momentum with the basic engineering phase as well as the site preparation well underway, thereby laying the foundations for an additional 2.5 million tons per year of polyolefin capacity by the end of 2013. In order to stay competitive the company will close the HDPE plant in Beringen (Belgium) by the end of March.