Borealis prolongs stand-still for its propane dehydrogenation (PDH) plant construction site in Kallo, Belgium

Kallo, Belgium – In light of recent developments and news reports about alleged malpractices at one of its contractors at the new Propane Dehydrogenation (PDH) construction site at Kallo, Belgium, Borealis has decided on 27 July to declare a three day stand-still for its Kallo PDH construction site and to suspend the contract with IREM-Ponticelli, the contractor responsible for the piping-mechanical works for the construction of the new PDH project.

Borealis has decided to implement additional social controls to remedy any potential lack of control by some contractors. As the thorough investigation and implementation of additional compliance measures are still ongoing, Borealis has decided to extend the stand-still for its PDH construction site in Kallo until further notice. Start-up will then resume gradually.

Borealis has zero tolerance for any kind of malpractices, and has, therefore, suspended the contract with IREM-Ponticelli based on IREM’s breach of several contractual provisions and the ongoing investigation by the Social Inspectorate. Borealis is looking into this matter with the utmost priority and will continue close collaboration with the Social Inspection to further their investigation. The company is thoroughly investigating the concerns raised in order to take appropriate course of action.

“We are currently establishing additional social controls to remedy any potential lack of control by some contractors and prevent any risk of non-compliance, in line with our Goal Zero approach. This continual aim to strive for zero incidents is not only in place for safety, but also for compliance,” comments Wim De Smet, Borealis Location Leader Kallo. “We condemn any kind of human rights violation. This is why we have decided to put the construction of our mega-project in Kallo on hold until all additional measures are in place.”