09.02.2021 • NewsBorealisnitrogen

Borealis Kicks off Sales Process for Nitrogen

Austrian chemical producer Borealis has announced plans to divest its nitrogen business, including fertilizer, technical nitrogen and melamine products. The Vienna-based group, which has increasingly shifted its focus to petrochemicals and plastics, has begun consultations with employee representatives.

No news of potential buyers has emerged as yet. Not part of the potential sales process are Borealis’ share in fertilizer production sites in the Netherlands and Belgium (“Rosier”).

Going forward, Borealis said it will focus on its core activities of providing innovative solutions in the fields of polyolefins and base chemicals, thus extending the value chain of majority owner oil and gas giant OMV towards higher value chemical products and the transformation toward a circular economy.

The new strategy is thought to reflect plans by OMV to exploit its now majority interest in Borealis. In the third quarter of 2020, Abu Dhabi-based private equity investor Mubadala sold a 39% stake in the chemical producer to OMV, which now holds 75% to Mubadala’s 25%

At the time, Rainer Seele, OMV’s chairman and CEO, said management was establishing an integrated and sustainable business model, extending its value chain toward higher value chemical products and recycling, thereby repositioning the group for a lower carbon future.

Borealis currently operates fertilizer production plants in important crop-producing regions of Austria and France. With around 60 warehouses across Europe and around 5 million t of products supplied annually in western, central and southeast Europe through its L.A.T distribution network, it regards itself as one of Europe’s leading fertilizer producers.

The Vienna group also is one of the global market leaders in melamine, the most valuable and sophisticated product in the nitrogen chain, with its operations in Austria and Germany serving the essential raw material primarily to the woodworking industry.

Author: Dede Williams, Freelance Journalist

Borealis has announced it will divest its nitrogen business, including...
Borealis has announced it will divest its nitrogen business, including fertilizer, technical nitrogen and melamine products. The Vienna group has increasingly shifted its focus to petrochemicals and plastics, following the lead of principal owner OMV, which now holds a 75% stake. (c) Borealis

CHEManager Spotlight

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics
Creating Interfaces

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics

CHEManager Spotlight is an exclusive event tailored for practitioners and decision-makers in the chemical industry. This part of our event series delves into the latest trends and innovations in logistics to streamline your operations and drive efficiency.

Innovation Pitch

The Start-up Platform for Chemistry & Life Sciences
Discover Tomorrow’s Innovators

The Start-up Platform for Chemistry & Life Sciences

CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene. The platform allows founders, young entrepreneurs, and start-ups to present their companies to the industry.