BOREALIS-ENVIRONMENT AND R&D

The project concerns the replacement and expansion of the promoter’s existing PE (polyethylene) capacity in Austria and the promoter’s Research and Development expenditures incurred over the years 2004-2006 at three locations. The new PE plant, based on the promoter proprietary technology, will have a capacity of 350,000 tonnes per annum and will replace three obsolete PE plants with a total capacity of 200,000 tonnes. The promoter’s R&D activities are devoted to innovations in products applications, processes and catalysts.

Borealis aims to stay a technology leader by focusing on the development of high performance, cost effective, differentiated polymers and thereby limiting exposure to the commodity segment of the market through a constant flow of products and productivity improvements. The updated research and development strategy of Borealis is to support the above strategy and to further fundamental research. By substituting the obsolete plant with the new PE4 plant based on best available technology the project brings improvements in resources intensity and results in significantly reduced air emissions. The capacity replacement, with its technological improvements in the manufacturing process, will, in addition to supporting the promoter's strategy to maintain competitiveness of the plant, contribute to the sustainability of the promoter industrial operations through improved resource efficiency (more than 30% reduction in specific energy and water consumption) and lower atmospheric emissions (90% reduction of VOCs emissions).

The PE4 project is located in the existing integrated petrochemical site of Schwechat which, in accordance with Council Directive 96/82/EC (Seveso II) undergoes regularly comprehensive safety and environmental protection audits. As a single product plant replacing existing facilities, the project falls under annex II of the directive EU/97/11. The competent authorities have not requested a full EIA, since it does not result in a substantial change in the emissions involved. R&D activities will not materially change current R&D practice and will be carried out within existing facilities, making use of existing laboratories and pilot plants. An EIA therefore is not required by EU Directive 97/11.

Procurement regulations do not apply to this private industry project. The promoter's procurement procedures, consisting in competitive enquiries among potential suppliers for goods and services, have been examined before and found to be entirely satisfactory.

Manufacturing.