The first investment focuses on insulation materials for MV distribution cables. Borealis plans to build a new dedicated production line for next-generation homopolymer XLPE materials. These materials are engineered to enhance processing adaptability with High-speed cable extruder, a core component of modern Cable Machinery, enabling manufacturers to boost output without compromising quality. The company stated that while inheriting the reliable performance of the existing MV product line, the new products achieve reduced carbon footprint and improved processing efficiency through process optimization—key enablers for green and efficient High-Quality Cable Production. This expansion will enhance local material supply security in the EU and meet the continuously growing market demand. The new production line will also adopt bulk delivery mode to further reduce carbon emissions throughout the product lifecycle. Commercial supply from this line is expected to start in the first quarter of 2027.
The second project is dedicated to expanding capacity of advanced XLPE materials for HV and EHV AC/DC cable systems. Such cable systems are crucial for strengthening national backbone power grids and large-capacity power transmission, with HV DC technology serving as the core link for offshore wind power integration. HV and EHV cables have extremely strict requirements for insulation uniformity and structural stability, which rely on both high-end XLPE materials and precision Cable Machinery like High-speed cable extruder with real-time quality control functions. As a supporting measure, Borealis will simultaneously upgrade its fully enclosed and controlled production system, covering all stages from monomer raw materials to final packaging, to meet the stringent standards for material cleanliness and reliability required by energy infrastructure and High-Quality Cable Production. The project is scheduled for completion by the end of 2026 and commercial operation in 2027.
These investments are key components of the "Building the Future Together" initiative jointly launched by Borealis and Borouge. The initiative commits €200 million to upgrading and expanding XLPE and semiconductor material production lines at European sites, providing advanced material solutions that synergize with Cable Machinery innovations to accelerate High-Quality Cable Production for energy transition infrastructure.
Craig Arnold, Executive Vice President of Borealis’ Polyolefins, Circular Economy Solutions, and Base Chemicals business, commented: "The expansion of the Stenungsund site will enhance our ability to respond to demand in the high-end insulation materials market. Our advanced XLPE materials are designed to work seamlessly with modern High-speed cable extruder and Cable Machinery, supporting customers in developing key cable products that enable the energy transition and meet High-Quality Cable Production standards."
The capacity expansion at the Swedish site follows Borealis’ recent strategic step of upgrading its semiconductor compound production base in Antwerp, Belgium—another critical material for HV/EHV cables that ensures stable signal transmission when paired with precision Cable Machinery. Combined with ongoing investments in Ruwais, UAE, the company expects its overall supply capacity for HV cable materials to double by 2027, providing strong material support for core energy infrastructure and the global High-Quality Cable Production ecosystem.
Borealis operates in more than 120 countries and regions worldwide, employing approximately 6,200 people. The company continues to deepen its global strategic footprint through major projects such as Borouge 4 (UAE), the Baystar (US) joint venture, and the propane dehydrogenation unit in Kallo, Belgium. Among these, the ethane cracker of the Baystar project in Port Arthur, Texas, USA, started operations in 2022 and utilizes Borealis’ licensed Borstar® 3G technology to achieve integrated and independent polyethylene operations—laying a solid raw material foundation for producing high-performance XLPE materials that power High-Quality Cable Production globally.
