Borealis has announced an investment of over EUR 100 million to expand and upgrade its polypropylene (PP) compounding facilities in Schwechat, Austria. The company expects the new production line to begin operations in the second half of 2026.
The expansion aims to increase the supply of advanced PP compounds, which are primarily used in consumer products, mobility, and infrastructure applications. Borealis states that this move supports its We4Customers strategy by helping customers achieve their performance and sustainability objectives.
Polymer compounding involves blending plastic resins such as polypropylene with additives, fiberglass, and recycled materials to create specialty compounds with specific properties. These materials are designed for uses that require durability, heat resistance, or lightweight characteristics.
Advanced PP compounds produced at Schwechat will serve several industries. In consumer products and appliances, they provide durable and recyclable materials for household needs. In mobility applications, lightweight plastics contribute to extending the range of electric vehicles and help meet upcoming European Union regulations requiring more recycled content. For infrastructure projects, these compounds form protective outer layers for steel pipes used in high-temperature oil and gas transport.
“This is our third significant investment this year, following the expansion our energy business and the increase in capacity for our recyclable, lightweight polymer foam solutions. Over the past decade, Borealis has built strong expertise in circular solutions that meet our customers’ expectations for quality. With more capacity, we can deliver more of the materials they need, helping them hit performance targets and move closer to their sustainability goals. This project transforms innovation into tangible solutions – bringing our We4Customers strategy to life,” said Stefan Doboczky, Borealis CEO.
Borealis is a provider of advanced polyolefin solutions with a focus on sustainable practices. The company is also active in polyolefins recycling across Europe and produces base chemicals for various sectors including consumer products, energy, healthcare, infrastructure, and mobility.
With its headquarters in Vienna and operations spanning over 120 countries worldwide, Borealis employs about 6,200 people. In 2024 it reported a net profit of EUR 566 million. OMV owns a majority stake of 75% in Borealis while Abu Dhabi National Oil Company (ADNOC) holds the remaining 25%. OMV is headquartered in Vienna with a focus on circular economy solutions; ADNOC is based in the United Arab Emirates.
Borealis continues to invest in safety standards as well as technological innovation while accelerating efforts toward a circular economy model for polyolefins production globally through joint ventures such as Borouge (with ADNOC) and Baystar (with TotalEnergies).
At Schwechat specifically—one of Europe’s most modern plastics production sites—the facility produces both polypropylene (PP) and polyethylene (PE), supplying raw materials mainly to Austria’s neighboring markets like Germany, Italy, and Switzerland for use across infrastructure projects as well as packaging and automotive sectors. About 550 employees work at this site across multiple functions including production management; health & safety; logistics; finance; IT; human resources; legal services; maintenance; purchasing; quality control.
