Borealis Commits Over €100 Million to New PP Compounds Line in Austria

On September 4, Borealis announced it will invest more than €100 million in a new polypropylene (PP) compounds production line at its Schwechat site in Austria. The facility, designed for high-end applications requiring durability, heat resistance, and lightweight performance, is scheduled to start up in the second half of 2026.

The expansion also includes upgrades to Borealis’s existing compounding units at Schwechat. While the company did not disclose precise capacity figures, spokesperson Virginia Wieser confirmed the project would add “tens of thousands of tonnes” of output.

At the same time, Borealis confirmed it has shelved its earlier plan to build a 60,000 t/y mechanical recycling plant for waste plastics at Schwechat, a project first announced in 2023.

Parallel Investments in Germany

The Schwechat expansion follows Borealis’s recent decision to build a new high melt strength (HMS) PP line at Burghausen, Germany, also slated for completion in late 2026. The HMS PP facility will target polymer foam applications, especially in consumer goods, automotive, and construction, where lightweighting is a key demand driver. Burghausen currently houses 330,000 t/y of PP capacity. 

Strategic Direction

By doubling down on advanced PP compounds and HMS grades, Borealis is clearly steering toward specialty, higher-margin markets rather than commodity segments. These investments reflect growing demand for lightweight, high-performance polymers that enable sustainability gains in transportation, packaging, and construction.

Bottom line: Borealis is repositioning itself as a European leader in specialty polypropylene, betting that innovation in compounds and foams will outpace demand for basic plastics in the years ahead.