Abu Dhabi Polymers Company (Borouge) plans to build a new plastics compounding plant in the Nansha district of the southern Chinese city of Guangzhou.

The company signed an agreement to develop the facility with the Nansha municipal government on 28 May.

It will produce up to 105,000 tonnes a year (t/y) of compounded polyethylene resins, and construction is scheduled for completion by mid-2012. It will be part of the company’s 245,000 t/y distribution hub in the province.

Borouge already has one compounding unit in China. It started production at its 50,000 t/y compounding plant in Shanghai, which is part of a wider 600,000 t/y distribution hub at the same location, on 25 April.

Borouge started commissioning the new $5bn second-phase expansion of its Ruwais plastics complex in May. The project, known as Borouge 2, has been under construction since 2007, and will boost Borouge’s total plastics output to 2 million t/y from current levels of about 650,000 t/y.

The company awarded three major construction contracts for a third-phase expansion in May. The company will produce 4.5 million (t/y) of plastics when the Borouge 3 scheme is complete in early 2014. China is seen as a major destination for both expansions’ output (MEED 28:5:10).