XRG, the international investment arm of the energy sector owned by ADNOC, along with OMV Aktiengesellschaft (OMV), has successfully established International Borealis AG, which will operate under the trade name International Borealis. This company is set to become a leading global player in the polyolefin market, ranking as the fourth largest producer of polyolefins worldwide, distinguished by its high-quality products, leading technologies, and extensive global presence.
International Borealis was formed through the merger of Borealis PLC and the acquisition of Nova Chemicals. The new entity capitalizes on the capabilities of three prominent companies in the polyolefins industry and leverages a significant geographic footprint, supported by long-term investor backing.
On this occasion, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC, stated: “The establishment of International Borealis marks a strategic milestone that enhances progress toward XRG’s ambition of creating a leading global chemicals platform. By merging Borealis PLC, Borealis, and Nova Chemicals, we have successfully built a world-class company in the polyolefin sector, recognized for its advanced technological capabilities, robust business model, and access to high-growth markets. We are confident that International Borealis is uniquely positioned to meet the rising global demand for advanced materials, support industrial sector growth, diversify the economy, and reinforce the UAE’s reputation as a global leader in energy and chemicals.”
A Significant Milestone
Alfred Stern, CEO of OMV, commented: “Through our long-term partnership with ADNOC, we have successfully established International Borealis, a world-leading polyolefin group. It will cement its position internationally with innovative products, accessibility to raw materials, proximity to customers, and a strong capital structure. This is a critical step for both the sector and OMV, enhancing its status as an integrated energy, fuel, and chemicals company. International Borealis will support our strategic plans for growth in the chemicals sector by leveraging the market standing of its component companies and integrating their operations. This move also aligns with our goal of reimagining essential materials that the world relies on daily, while committing to create and enhance long-term sustainable value for OMV’s shareholders. By establishing International Borealis, we are contributing to the formation of a world-class company headquartered in Europe, with operational facilities across three continents, at the forefront of renewable energy solutions and a circular economy.”
International Borealis will be headquartered in Austria, with a regional office in the UAE. The group will manage operational centers across North America, Europe, and Asia, and innovation centers in the UAE, Austria, Canada, Finland, and Sweden, fostering innovation in key markets and ensuring collaboration with customers. International Borealis will also take advantage of its globally integrated manufacturing locations and ease of access to raw materials to enhance supply chain flexibility worldwide.
The group is expected to achieve a strong profit margin and generate operating and commercial synergies totaling over 1.8 billion AED (approximately 500 million USD) annually before interest, taxes, depreciation, and amortization, with 75% of that expected within the first three years post-establishment. This global presence, alongside a robust capital structure and long-term shareholder support, will further strengthen its business throughout economic cycles, enabling greater and more sustainable returns for shareholders.
A Transformational Shift
International Borealis is characterized by its substantial scale of operations, advanced technologies, and high operational efficiency, positioning it to provide materials and technologies contributing to a transformative shift in the global economy. Its strategic growth plans aim to achieve profitability and liquidity by leveraging its unique capabilities in specialized innovation, as well as its proximity to customers in key markets across various sectors, including energy, mobility, artificial intelligence, sustainable packaging, and healthcare. With near-term growth projects like Borealis 4, which has a production capacity of 1.4 million tons and is currently owned 70% by ADNOC and 30% by OMV, International Borealis is set to reach an annual production capacity of 13.6 million tons, establishing itself as a global leader in the polyolefin industry.
The recently appointed executive management team for International Borealis brings decades of extensive experience in senior management roles across the chemicals, commodities, and refining sectors globally. The team includes Roger Cairns as CEO, Dr. Stefan Dubitsky as Chief Commercial Officer, Dr. Hassan Karam as Chief Operations Officer, and Daniel Thurnheim, currently CFO of Borealis, who will assume the role of acting CFO at International Borealis.