INTERVIEW

WIRE: Borealis is considered to be market leader in the wire and cable industry. Which innovations can customers currently expect?
HANS CHRISTIAN AMBJERG: Borealis has more than 40 years’ experience in providing innovative, value creating solutions for the wire and cable industry. We undertake continuous research and development, backed by on-going investment in our production and supply capabilities, to deliver advanced materials that respond to the business and sustainability challenges facing this industry today. Our latest innovation, Visico FX, was developed specifically to support the low voltage cable market.
Visico FX was launched to the industry at wire 2008. It is a unique high-productivity low voltage cable insulation material for moisture cured XLPE cables that can result in higher output for cable manufacturers and time and cost-saving benefits for grid owners and cable installers. By speeding up the overall production process and ensuring a consistent, high-quality product, Visico FX not only gives cable producers a competitive edge but it addresses environmental concerns by reducing energy usage and waste generation.
WIRE: What is the specific benefit for the customers?
HANS CHRISTIAN AMBJERG: Our customers face decreasing margins and need to increase their productivity as a result. Visico FX, as an example, boosts the competitiveness of cable manufacturers by potentially doubling productivity levels while reducing the complexity of the production process. Its outstanding cross-linking speed is twice that of traditional Visico material and typically more than five times that of grafted XLPE materials. This allows cost effective curing under ambient conditions when used in combination with the Ambicat catalyst, resulting in a more efficient production flow by eliminating production steps, reducing scrap and speeding up the overall production process. This combination provides an immense advantage for our customers.
WIRE: Your developments correspond to the needs and requirements of specific markets. Do you see specific requirements in new markets such as India and China?
HANS CHRISTIAN AMBJERG: Generally speaking, the demand for energy is increasing all over the world. In emerging markets, the demand is increasing at a faster pace. However, in other countries more and more energy is required to meet end-user needs. Furthermore the need to replace or update old energy networks is an important issue for established markets.
WIRE: You shortly announced strategic growth plans in the Middle East and Asia. But the most important projects are presently Borouge 2 in Ruwais (United Arab Emirates) and the LDPE plant in Stenungsund (Sweden). How far are they?
HANS CHRISTIAN AMBJERG: Both projects are advancing according to plan. Our investment in a new tubular high-pressure plant in Stenungsund, Sweden is due to be completed by 2009. This will provide 350,000t/y of low-density polyethylene (LDPE) to better serve the wire and cable, and advanced packaging markets in the Nordic region.
The Borouge 2 project is on track for completion in 2010. This new capacity will be marketed mainly to the Middle East and Asia, focusing on high-end differentiated applications in the added value pipe and advanced packaging sector.
Recently Borealis announced a feasibility study for a further expansion of its polyolefins operations in Ruwais to approx. 2.5 million t/y capacity by end of 2013. An LDPE unit to produce high performance material for the wire and cable industry is included in this development scheme.
WIRE: Regarding quality management: Do you still face different norms in Europe and worldwide? If yes, how do you handle these differences?
HANS CHRISTIAN AMBJERG: When it comes to quality management, the world-wide accepted standard in the wire and cable industry is ISO 9001:2000. When it comes to quality control, e.g. measuring if the product fulfils the requirements, there are a number of recognized methods depending on the property being measured. When there is a suitable ISO method available that is recognized in the market, we use it. Should there be no standardized methods in existence, we use our own Borealis Test Methods (BTM).
WIRE: Borealis participated in wire exhibition. How did the exhibition run for your company and do you see new trends based on your discussions?
HANS CHRISTIAN AMBJERG: wire is a very important event for Borealis, enabling us both to meet our customers and watch the market. This year’s wire was again successful for us, particularly as it provided the launch platform for our Visico FX innovation. To understand market trends and the needs of our customers we remain in continuous contact with them, be this at trade fairs or any other time, working all the time to develop solutions for their needs.
WIRE: How will you handle these trends?
HANS CHRISTIAN AMBJERG: If we see needs in the market, we respond with innovative solutions wherever possible.
WIRE: Besides these trends, where do you see additional growth potentials?
HANS CHRISTIAN AMBJERG: No answer
WIRE: Final question: On January 1, Mark Garrett officially followed John Taylor as the CEO of Borealis. Which influence does this have on the development of the company? Will this change cause any new strategic decisions?
HANS CHRISTIAN AMBJERG: The years ahead will be exciting but also very challenging. Borealis will remain true to its core strategic path of value creation through innovation, providing solutions to our key markets in infrastructure, automotive and advanced packaging across Europe, the Middle East and Asia. This has proved to be a winning formula for Borealis – one that we will surely stick to it.
At the same time, we need to prepare ourselves for some challenging market conditions which are forecasted to come our way. This means we need to stay competitive by cutting costs, simplifying our organisation and becoming more nimble so that we can adapt to the coming challenges.
In the next three to five years, Borealis will focus on specific tasks. First of all, we will continue to penetrate the rapidly growing markets in the Middle East and Asia with our value adding products in close cooperation with Borouge. In Europe, we will concentrate on cost competitiveness, innovation and commercial excellence. We will also prioritise the development of our base chemicals business.

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