Chemical Industry News, Data & Insights

Borealis Boosts XLPE Production in Sweden for Cable Insulation Demand

Key highlights
  • Borealis invests in XLPE production at Stenungsund, Sweden.
  • The EUR 200 million project is part of the 'Building for the Future' initiative.
  • New MV production unit to be commercially available in Q1 2027.
  • HV and EHV capacity expansion to complete in 2026, available in 2027.

Investment Overview

Borealis is expanding its cross-linked polyethylene (XLPE) production at its Stenungsund site in Sweden. This expansion is part of a EUR 200 million initiative, "Building for the Future," aimed at enhancing XLPE and semicon assets across key European locations.

Project Details

The expansion involves two major projects. The first project focuses on constructing a new production unit for medium-voltage (MV) power distribution cables. This unit will produce a new-generation homopolymer XLPE grade, offering processing and productivity benefits while reducing the carbon footprint. Commercial availability is expected in Q1 2027.

High and Extra-High Voltage Expansion

The second project increases capacity for advanced XLPE grades used in high- and extra-high voltage (HV and EHV) cable systems. These systems are crucial for reinforcing national grids and integrating renewable energy sources. Construction is set to complete in 2026, with commercial availability anticipated in 2027.

Environmental and Supply Chain Impact

The expansion will improve local material availability within the EU, ensuring a steady supply to meet MV market demand. It will also enable bulk deliveries, further reducing the cradle-to-gate carbon footprint. Additionally, Borealis will enhance its closed and controlled loop system to maintain high cleanliness standards essential for critical energy infrastructure.