Borealis to Focus More Effort on Increasing Innovation Capabilities

In a move to boost its value creation through innovation strategy, Borealis today announced a decision to develop its Innovation Centre in Linz, Austria into the centre of its international research activities.

This is part of a broader agreement with the government of Upper Austria which will detail a package of measures and commitments by both parties resulting in a significant strengthening of Upper Austria as a plastics industry research hub in close cooperation with the Johannes Kepler University (JKU) of Linz. Borealis will be increasing the number of employees at its Linz Innovation Centre by around 80 and investing 25-30 million Euros in facilities over the next five years.

The Upper Austria government will contribute approximately 18.7 million Euros into a number of infrastructure changes to internationalise JKU and expand the international research capacity in Upper Austria by 2011. Borealis intends to enhance the cooperation in future research projects with JKU, the Wels Advanced Technical College, and other universities and polytechnical institutes in Austria.

Borealis will also invest 6-7 million Euros in 2006 in new facilities and laboratories to create a single Innovation Centre building in Porvoo, Finland, to improve its effectiveness as the cornerstone of Borealis’ international catalyst and process research activities.

Borealis intends to merge its two remaining Innovation Centres - in Bamble, Norway and Stenungsund, Sweden - into one Scandinavian Innovation Centre.

Plans are also underway to establish an Innovation Centre in Abu Dhabi as part of the continued growth of Borealis with Borouge, its joint venture with the Abu Dhabi National Oil Company (ADNOC), in the Middle East and Asia-Pacific market.

John Taylor, Borealis Chief Executive Officer, commented on the developments at a Press Conference in Linz today:

“Innovation is at the heart of our company today and will remain for the future. By building on our extensive expertise and know-how in polymer science and the development of value creating plastics solutions, these significant investments in infrastructure and skill development will further enhance our innovation capability to the benefit of our customers and customers’ customers. We look forward to working closely with our partners in Austria to make Linz an outstanding success as the centre of our international research activities for the long-term benefit of the plastics industry.”

Dr. Gerhard Roiss, Chairman of Borealis’ Supervisory Board, stated:

“The owners of Borealis - IPIC and OMV - share the passion for innovation in plastics. The public-private partnership announced today with Borealis, the government of Upper Austria and JKU, is an important step supporting the long-term competitiveness of the international plastics industry.”

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