Borouge International starts circular PP compounding plant in Austria

AUSTRIA – Borouge International has started commercial operations at its upgraded compounding facility in Schwechat, following an investment of more than €100 million (US$117.4 million) to supply lightweight compounds containing recycled content for packaging markets.

At the facility, polyolefin resins are compounded with recycled polypropylene and performance-enhancing additives to create a material suitable for packaging applications.

According to Borouge International, the resulting material combines light weight, performance and circularity. 

The expansion is said to strengthen the company’s European manufacturing base and increase the availability of specialty materials containing recycled content.

Merger Created Global Polyolefins Producer Based in Vienna

Earlier this year, Borouge, Borealis and Nova Chemicals merged to form Borouge International, a global polyolefins producer headquartered in Vienna, Austria. 

Roger Kearns, chief executive of the company, said strengthening Borouge International’s European industrial base was essential to maintaining competitiveness, resilience and future growth. 

He added that the Schwechat expansion added important capability to the company’s asset base and reinforced Austria’s role as a strategic hub, describing it as an investment in the future that strengthened market position and created long-term value for stakeholders.

Minister Frames Investment as Industrial Policy Win

Wolfgang Hattmannsdorfer, Austria’s Federal Minister for Economy, Energy and Tourism, said the country’s ambition was clear: 

Austria should remain at the forefront of industry. 

He noted that to achieve this, the government aimed to leverage state-owned holdings strategically and strengthen international partnerships, such as with Abu Dhabi in the United Arab Emirates. 

He added that Borouge International, one of the world’s leading chemical companies, had been established with its headquarters in Vienna, representing a tremendous opportunity for Austria as a business location. 

He said the investment in Schwechat demonstrated tangible benefits including new production capacities, domestic value creation and jobs.

Lightweight Compounds Target Regional Supply Demand

Borouge International said the aim of the new facility was to strengthen Europe’s manufacturing footprint and contribute to a reliable supply of advanced compounds for customers across the region. 

The company argued that its investment would support regional economic growth and strengthen Austria’s position as a major destination for industrial production, adding that Schwechat had the opportunity to emerge as a hub for innovation, manufacturing and customer collaboration. 

Across industries, lightweight polypropylene compounds help reduce the overall weight of products to lower environmental impact, the company added. 

The opening was marked by executive board members including Kearns, chief operating officer Hasan Karam and chief commercial officer Roland Janssen, alongside Johanna Mikl-Leitner, Governor of Lower Austria.

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