BOREALIS INCREASES XLPE CAPACITY TO MEET MARKET DEMAND
26 April 2002 - Borealis A/S

Borealis, a leading global supplier of polyethylene materials to the wire and cable industry, has advanced its strategic investment plans for new XLPE manufacturing capacity to meet market demand for the compound, which is viewed as providing a cost-effective insulating solution with low environmental impact.

A significant and continuing increase in global demand for cross-linked polyethylene, XLPE, materials for high voltage and extra high voltage power cables, has led Borealis to bring forward planned further expansion of XLPE production. The programme which is designed to achieve a 50% capacity increase overall is in addition to the rises in production already brought on-line so far the last year.

Originally an industry standard for 1kV to 33 kV applications when it was first introduced in the 1960's, Borealis has continued to drive XLPE technology to enable the safe design and production of high stress, underground cables suitable for progressively higher voltages. Today, these insulating materials are used for systems operating at 400kV and as high as 525kV.

Engineering to extend the company's XLPE production plant has already commenced at Borealis' Stenungsund facility in Sweden, and the new capacity will come on-stream in phased increases between 2Q 2002 and 1Q 2003.

http://www.borealisgroup.com

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