Borealis has received a €150m loan for further research and development (R&D) in polymer development.
The European Investment Bank (EIB) loan is helping to finance product innovation in advanced polymers.
Borealis said advanced polymers referred to its value-added polymers through its material properties, longevity or safety aspects, citing its Borstar technology.
The EIB is supporting Borealis’s multi-annual investment programme at the company’s innovation headquarters in Austria and at other centres in Finland and Sweden.
The project focuses primarily in the area of advanced polymers and funds will also finance the firm’s vocational training programme.
Kerstin Meckler, director of communications, told FoodProductionDaily.com that R&D operating expenses funded as part of the project relate to advanced polymers, and not to Borealis’ fertilizer business.
“Borealis advanced plastics packaging solutions make a key contribution to both ensuring food is kept fresh and safe, and food waste is prevented along the value chain," she said.
“For the first time, Borealis has been able to access finance on a direct bank through the Risk Sharing Finance Facility.”
The loan was signed on 21 November in Luxembourg and the terms remain confidential between the borrower and the lender.
1st generation feedstocks
When asked about green polypropylene (PP) the firm said that it or bio-feedstock is not a viable option at the moment.
“Today's first generation of bio-feedstock can raise fundamental issues regarding social and environmental sustainability (competition to food, pressure on food prices, land deforestation / acidification/ eutrophication, water consumption etc.).
“Bio-degradable plastics are still technically unsuited for high demanding applications such as Borealis’ advanced polymers. Also, today there is not enough supply to meet our production demands.”
Borealis has customers in over 120 countries and around 6, 200 employees worldwide and works with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
Using the proprietary Borstar und Borlink technologies and with 50 years of experience in the field of polyolefins (polyethylene and polypropylene), Borealis and Borouge supply products to industries in the areas of infrastructure and advanced packaging.
Wilhelm Molterer, EIB vice president responsible for lending operations in Austria, said: “An economically strong and competitive Europe needs both: innovative industries and a well-trained labour force.”