XRG, OMV complete transactions to create Borouge International

XRG, Adnoc’s international investment arm, and OMV Aktiengesellschaft (OMV) on Tuesday announced the successful formation of Borouge Group International AG, to operate under the brand name “Borouge International”.

It is the world’s leading pure-play polyolefins company and fourth-largest polyolefins producer with premium products, pioneering technology and a global footprint.

Borouge International has been formed by the combination of Borouge Plc and Borealis, with the new entity acquiring NOVA Chemicals. Backed by long-term shareholders XRG and OMV, Borouge International combines the highly complementary strengths of three polyolefins leaders and will benefit from one of the most geographically diversified and innovative platforms in the sector.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Executive Chairman of XRG, said, “This milestone marks the successful establishment of Borouge International and accelerates XRG’s ambition to build a globally leading chemicals platform. By combining Borouge and Borealis and acquiring NOVA Chemicals, we are creating a world-scale polyolefins leader with differentiated technology, a resilient business model and access to high-growth markets. Borouge International is exceptionally positioned to meet growing global demand for advanced materials, while supporting industrial development, driving economic diversification, and reinforcing the UAE’s role as a trusted leader in the global energy and chemicals landscape.”

Dr. Alfred Stern, Chairman of the Executive Board and CEO of OMV, said, “Together with our long-time partner Adnoc, we are turning our vision of creating a new global polyolefins leader into reality. The new polyolefins champion Borouge International will establish itself globally with innovative products, an advantaged feedstock position, proximity to customers and a robust capital structure.

The completion of the transaction is momentous for the entire industry, as well as for OMV, solidifying its market position as an integrated energy, fuels and chemicals company. Borouge International accelerates our growth strategy in Chemicals with its unique ability to realise synergies and build on the leading market positions of its respective businesses.

This transaction delivers on our purpose of re-inventing everyday essentials and our mission to drive long-term, sustainable value creation for OMV’s shareholders.

The formation of Borouge International creates a new, world-class company headquartered in the heart of Europe, with production across three continents. It will be at the forefront of delivering renewable and circular economy solutions.” The new industry champion is headquartered and tax domiciled in Austria, with regional headquarters in the UAE. Borouge International will operate corporate hubs across North America, Europe and Asia, with innovation centers in the UAE, Austria, Canada, Finland and Sweden driving innovation in core demand markets and ensuring close collaboration with customers. Borouge International will leverage its integrated global manufacturing sites and advantaged feedstock access to deliver worldwide supply chain resilience.

Borouge International will benefit from a superior resilient margin profile and well over USD 500 million in identified EBITDA run-rate synergies per annum, with 75% expected to be realised within the first three years.

The company’s global reach, combined with long-term shareholders and a robust capital structure, will deliver resilience throughout the business cycle and an enhanced ability to drive consistent performance and sustainable value for shareholders.

Borouge International’s scale, proprietary technology, and operational strength position the company to deliver materials and technologies powering the transformation of the global economy. Its ambitious growth strategy will allow monetisation of its strong innovation capability, based on proprietary technologies in key client markets, from energy, mobility, and AI infrastructure to sustainable packaging and healthcare solutions. With near-term growth projects like the 1.4 million tonnes Borouge 4 site (currently owned 70% by Adnoc and 30% by OMV) Borouge International has access to a leading global production capacity of 13.6 million tonnes per annum. Through this transaction, the shareholders have created a truly global polyolefins champion.

Borouge International’s recently appointed executive team combines decades of senior leadership experience across international chemicals, commodities and refining sectors. The leadership comprises Roger Kearns (Chief Executive Officer), Dr. Stefan Doboczky (Chief Commercial Officer) and Dr. Hasan Karam (Chief Operating Officer). Daniel Turnheim, currently CFO of Borealis, will serve as interim CFO of Borouge International.

As announced in March 2025, Adnoc’s stake in Borouge International has now been transferred to XRG, a wholly-owned subsidiary of Adnoc, complementing XRG’s Global Chemicals Platform and fully supporting its ambition to become a top three global chemicals investor. Borouge International will be jointly controlled as an equal partnership between XRG and OMV, each holding a 50% stake.

WAM