In signing a 10 year contract with Neste Oil (Espoo / Finland; www.nesteoil.com), Austrian chemicals manufacturer Borealis (Vienna; www.borealisgroup.com) has deepened its commitment to its production site in Porvoo / Finland. The agreement builds on the existing cooperation between the two companies in the fields of asset development, business optimisation as well as Health, Safety and Environment by ensuring the flow of raw materials from Neste to Borealis’ polyolefins production site in Porvoo.

In addition, the Austrian group is investing EUR 5m in new hardware at its “Borstar” pilot plant at the site. As a result, Borealis now will be able to manufacture PE125 pipe material, enhanced LLDPE film and specialities for high density film and moulding products at Porvoo. The financial injection will “lead to better product homogeneity, higher melt strength and increased product purity”, the group said.

Meanwhile, Borealis has lifted the force majeure it announced on for phenol from Porvoo in late May – see Plasteurope.com of 21.05.2010. A company spokeswoman told Plasteurope.com that initial start-up problems causing FM were lifted.

Over the years, Borealis has invested huge amounts at the Finnish site, including EUR 25m to expand Porvoo’s PP capacities – see Plasteurope.com of 16.01.2007. The group has been on a steady European expansion spree. In June it inaugurated a new LDPE production plant in Stenungsund / Sweden (see Plasteurope.com of 07.06.2010) and late last year it opened a new Innovation Centre in Linz / Austria (see Plasteurope.com of 25.11.2009).