OMV, Austria’s oil and gas group, and XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), have jointly announced the successful establishment of Borouge Group International. The new company has become the world’s fourth-largest polyolefins producer.

Borouge Group International was formed through the merger of Borouge and Borealis, together with the acquisition of Canada’s NOVA Chemicals. XRG and OMV each hold a 50% stake in Borouge Group International.

Headquartered in Vienna, Austria, the new group has a regional headquarters in the UAE, with multiple operational centers across North America, Europe and Asia. It also runs innovation centers in Austria, the UAE, Canada, Finland, Sweden and China.

According to XRG, the Borouge-4 expansion project, a new integrated polyolefins complex, will start production this week. The project has an annual ethylene production capacity of 1.5 million metric tons and an annual polyethylene production capacity of 1.4 million metric tons.

With this new capacity, Borouge Group International now owns a total polymer production capacity of 13.6 million metric tons across Europe, the Middle East and North America, making it the world’s fourth-largest polyolefins producer.