Borealis Expands XLPE Production Capacity in Sweden to Support Growing Power Cable Demand

Borealis announces significant investments at its Stenungsund site to expand XLPE production, supporting the growth of renewable energy transmission and grid reinforcement across Europe. The projects include new units for medium-voltage and high-voltage cables, aiming to improve supply and reduce environmental impact, with commercial operations starting in 2027.

Oct. 15, 2025

2 min read

Borealis has announced two major investments in cross-linked polyethylene (XLPE) production facilities at its Stenungsund site in Sweden. The projects will significantly increase capacity for insulation materials used in medium-, high-, and extra-high-voltage power cables.

The Stenungsund facility has long served as a global center for XLPE research and production. The new investments build on decades of work in polymer development, process innovation, and materials testing.

New Unit for Medium-Voltage Cable Materials

The first project involves constructing a new production unit for insulation grades used in medium-voltage (MV) distribution cables. The facility will manufacture a next-generation homopolymer XLPE grade with performance comparable to Borealis’s existing MV materials, while reducing the carbon footprint through optimized production.

The expansion aims to improve local material availability within the European Union and maintain continuity of supply to meet growing MV market demand. It will also support bulk deliveries, further reducing the product’s cradle-to-gate emissions. Commercial availability is expected in early 2027.

Added Capacity for HV and EHV Applications

The second project focuses on expanding capacity for advanced XLPE grades used in high- and extra-high-voltage (HV and EHV) alternating and direct current cable systems. These systems are increasingly critical for reinforcing national grids and transmitting power from offshore renewable sources to the mainland.

The project includes extending Borealis’s closed and controlled production system—from monomer processing to final packaging—to maintain high cleanliness standards and reliability for critical energy infrastructure. Construction is scheduled for completion in 2026, with commercial operations to begin in 2027.

Part of a Broader Investment Program

The Stenungsund projects are part of Borealis and Borouge’s broader “Building for the Future” initiative, a €200 million program to upgrade and expand XLPE and semiconductive assets at key European sites. The initiative follows recent upgrades to Borealis’s semiconductive compounding facilities in Antwerp, Belgium, and complements ongoing investments in Ruwais, United Arab Emirates.

By 2027, Borealis and Borouge expect these combined projects to double their capacity to supply materials for advanced power cable applications across global energy markets.