Global logistics provider, Agility and Borouge, a leading provider of innovative, value creating plastics solutions, broke ground on 28 November for a new logistics hub in Shanghai that will receive over 600,000 tonnes of polyolefins (polypropylene and polyethylene) annually. These polymers are used in a wide range of applications including extruded pipe, films and packaging, terraforming and fibres, as well as household and white goods.

The 70,000 sq m facility, which will mainly serve the China market, will be completed by 2009 and will be fully operational by May 2010, employing some 120 dedicated Agility staff . The hub will receive the polymer granules in bulk containers directly from the Borouge Middle East gateway situated at Ruwais in Abu Dhabi.

A 30,000 sqm Compound Manufacturing Unit (CMU) will also be built for Borouge on the same site in Shanghai, producing 50,000 tonnes of compounds each year for use in automotive, domestic appliance, power tool and electrical applications. When completed most of this compounded product will be for customers in the Shanghai area.

Borouge is a joint venture between Abu Dhabi National Oil Company (ADNOC), one of the world’s largest oil and gas companies, and Borealis a leading provider of innovative, value creating plastics solutions.

“Demand for polyolefins is growing as production in the automotive industry in Asia and the white goods sector increases and Agility is investing in developing this sector with Borouge in China, one of the world’s leading petrochemical producers,” said James Gagne, Agility, Chief Executive Officer, Greater China.