Noretyl expands the production

(June 16, 2004) Noretyl AS in Bamble, Telemark will expand the production of Ethylene with 100,000 tons, and has today signed a contract with the German company Linde AG who will carry out the project. The total investments will amount to approx. 600 700 million NOK.

Noretyl AS is the owner and operator of the Rafnes cracker. Noretyl is owned by Borealis AS and Hydro Polymers AS 50/50.

The project will be implemented in connection with the planned turnaround of the plant in the fall 2005.

After the expansion,  the production capacity of the plant will be 557,000 tons ethylene.  The expansion is based on the best available technology. 

Emissions to air and water will be at approximately the same level as it is today.  The production increase will not have any effect on the manning of Noretyl.

Linde AG  will run the project on a fixed price basis contract.  Linde was the company that originally built the cracker in 1975-77.

- We are happy that the owners and the Board of Noretyl have given their approval of the expansion of the Noretyl cracker. The expansion will increase the profitability considerably and contribute to a sufficient feed stock supply to the owners’ plants, according to Mr. Oddvar Kaland, Managing Director of Noretyl.

The contract was signed on Wednesday by Dr. Markus Raab (from left), Linde AG, and Oddvar Kaland, Noretyl AS.

- We are very happy with the decision  made, says Mr. Roy Vardheim, Managing Director in Borealis.

– The cracker project is definitely the largest of the  projects connected to  the profitability improvement project launched in Borealis in October 2003, and is also very important for Borealis’ future in Norway, says Vardheim.

- We are very content with the expansion of the cracker, says Mr. Leif Hellebø, Managing Director in Hydro Polymers AS.

- We are currently working on the expansion of the chlorine production, and with the expansion of the cracker, we will have sufficient feedstock to supply our total downstream production.  This will make us one of the most effective VCM plants in Europe. The decision shows that the industry is prepared to invest, and it is therefore important that the community also agrees to build an infrastructure for gas to the Southeast part of Norway, says Hellebø.