Austria's Borealis is investing more than €100mn ($116mn) in a new polypropylene (PP) compounding line at its petrochemicals and polymers complex in Schwechat, it said today.
The new line is mechanically complete and is scheduled start operations in the second half of 2026, Borealis said. It will expand its 105,000 t/yr of compounding capacity by "tens of kilotons".
Borealis said it is "shifting and diversifying our portfolio into value-add compounds and are expanding our circular compounding portfolio with using post-consumer recyclates (PCRs)". Its emphasis is on using high-quality PCR feedstock based on Borealis' advanced mechanical recycling technology. This will be sourced from its own Ecoplast, Integra and mtm mechanical recycling businesses in Austria, Bulgaria and Germany, respectively, as well as from third parties, it said.
Demand for 'advanced' PP compounds is driven by applications including consumer products and appliances; mobility including vehicle electrification and new EU regulations requiring more recycled content; and pipe applications for infrastructure projects, especially high temperature oil and gas transport.
"With more capacity, we can deliver more of the materials they need, helping them hit performance targets and move closer to their sustainability goals," said Borealis' chief executive Stefan Doboczky.
Borealis' PP compounding activity in Schwechat is integrated into two PP units with a combined capacity of 435,000 t/yr. Borealis' parent company OMV also operates 430,000 t/yr of refinery and cracker-based propylene capacity and its Re:Oil advanced recycling plant, currently with nameplate capacity for recycling 16,000 t/yr of plastics into feedstock for circular polyolefins.
Borealis announced a similar sized investment in expanding foam-based PP at its Burghausen, Germany, site in June.
EU-US tariff impact
Borealis told Argus the proposed changes to US-EU tariffs "will have a negative effect on the competitiveness of the European plastics industry".
The changes will reduce EU tariffs on US plastics imports to zero from 6.5pc and increase tariffs on EU plastics exported to the US to 15pc, from 10pc.
Borealis said it understood there is work ongoing to clarify some details of the deal and it "continues to monitor the situation closely and advocate for a level-playing field for EU-US trade."
From a group perspective, Borealis said it has an advantageous position because it is diversified globally through its relationships and planned merger with Borouge in Abu Dhabi and Nova Chemicals in the US, as well as its portfolio of specialty polyolefins.
