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Agility to run Borouge's logistics hub in Shanghai
ABU DHABI - Abu Dhabi Polymers (Borouge) has awarded a service contract to Agility Abu Dhabi to build the Borouge Compound Manufacturing Unit (CMU) and Shanghai Logistics Hub in Shanghai.
According to a Press statement, Agility will also provide local logistics services for Borouge’s customers in Asia for a duration of 10 years with effect from its operational start up date in 2010.
Following the contract win, Agility will undertake the design, development and subsequent operation of the logistics hub, to ensure sufficient infrastructure, storage facilities, packaging and distribution services to accommodate Borouge’s products dispatched from Abu Dhabi.
Agility will handle and distribute a total volume of approximately 600 kilotonnes of polyolefins out of the Shanghai logistics hub annually, the statement said.
Borouge’s current production capacity in the UAE is 600 kilotonnes of Borstar polyethylene per year. With the ongoing Borouge 2 project expansion, this capacity will increase up to two million tonnes per year by the middle of 2010 and will add polypropylene to the product mix.
Construction of the Borouge 2 facility has already started and consists of a 1.5 million tonne ethane cracker, the world’s largest olefins conversion unit with a capacity of 750 kilotonnes, two Borstar polypropylene plants with a total capacity of 800 kilotonnes and a 540 kilotonne Borstar polyethylene plant.
Abdulaziz Alhajri, CEO of Abu Dhabi Polymers, the Borouge manufacturing company, explained: “The Shanghai logistics hub is one of several regional logistics hubs that will provide storage and logistics support for our operations close to our customers. It will enable us to provide a fast, flexible delivery service to our customers, for all of Borouge’s high value product lines."
He said that Agility comes to us with a strong reputation in the global logistics market for delivering cost-effective and robust solutions.
Harald Hammer, CEO of the Borouge marketing company, added that the Borouge CMU will be producing 50 kilotonnes annually of high quality compounds, manufactured from enhanced Borstar polypropylene specifically for the rapidly growing Chinese automotive market."
Along with the logistics hub, the CMU will bring us closer to our customers, helping them to add value to their business.
haseebhaider@khaleejtimes.com
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