Borouge International moves forward with cable materials capacity expansion in Asia, Europe, and the Middle East

The expansion of power grids is central to the energy transformation. Advanced cable systems play a key role, enabling efficient power transmission over large distances and reliable distribution into local networks. These systems depend on specialized polyolefin compounds, and growing demand is driving the need for capacity expansion across the supply chain.

To support this, Borouge International is strengthening its global capacity for advanced cable compounds. The company is expanding its footprint in Asia with a newly planned semicon facility in Cheonan, South Korea. At the same time, construction has begun at its site in Stenungsund, Sweden, to increase production of cross-linked polyethylene (XLPE) for power cable insulation. In the Middle East, a new XLPE facility in Ruwais, UAE, is set to significantly increase regional production capacity.

New Cheonan facility strengthens Asian production footprint

A new compounding facility in Cheonan is planned to add semicon capacity for medium- and high-voltage cable applications. The facility will benefit from strong access to regional markets, technical expertise, and established industrial infrastructure.

The project expands Borouge International’s production footprint in Asia, bringing the company closer to customers in the region and enabling faster response times and consistent supply at a time of strong local demand.

The facility will support the build-out of power infrastructure across the region and contribute to the broader electrification of energy systems.

Construction begins on Stenungsund expansion

Borouge International is also advancing a previously announced investment to increase production of cross-linked polyethylene (XLPE) compounds used in medium-voltage cable insulation. Construction has now begun on a new production unit at its site in Stenungsund, Sweden, marking the next phase of the project.

The new unit will produce an advanced homopolymer XLPE grade designed to deliver reliable electrical performance, efficient processing, and a lower carbon footprint through optimized production.

The expansion will strengthen the company’s European production footprint and its global capacity for advanced cable compounds, improving supply availability and enabling the execution of energy infrastructure projects

New plant in Ruwais to boost XLPE capacity

XLPE 2, the first plant commissioned under the Borouge 4 mega project, marks a strategic step in Borouge International’s growth plans. By adding 100,000 metric tons of annual capacity and doubling the XLPE output to nearly 200,000 metric tons per year in the region, the new XLPE facility is set to strengthen the company’s position as the region’s sole XLPE producer.

This expansion supports rising demand for specialized wire and cable solutions, contributing to global grid development and energy transformation, and reinforces the company’s commitment to meeting international market needs.

Bringing energy all around, together

These expansions support customers in Asia, Europe and the Middle East with local supply of the materials needed to deliver power cable systems for the energy transformation. At the same time, it strengthens the company’s multi-sourcing approach, improving global supply reliability and helping to power a connected world.

“With more than 60 years of experience in the wire and cable industry, we understand how important proximity is to delivering the solutions our customers need,” says Craig Arnold, EVP Polyolefins, Circular Economy Solutions and Base Chemicals at Borealis GmbH. “This investment strengthens our presence in three key markets, enabling us to better support the growing demands of the energy transformation.”

Borouge International will present its latest energy solutions at wire Düsseldorf under the theme “Building for the future”. Visitors can explore applications, discuss current and upcoming projects, and connect with experts at Hall 10, Stand D72, from April 13 to 17, 2026.