About Alfred Stern
Alfred Stern, Chairman of the Executive Board and CEO of OMV through 31 August 2026, said in 2023 that following the Russian invasion of Ukraine, OMV developed alternative sources for gas supply, secured transport capacities, and filled gas storage facilities. He stated that the company’s Strategy 2030 lays the foundation for its transformation, with a purpose described as "Re-inventing essentials for sustainable living." Stern said OMV aims to gradually replace fossil-based energy in the Energy segment, become a leading provider of sustainable fuels and feedstocks in the Fuels & Feedstock segment, and become a world-leading provider of special polyolefin solutions and a leader in the circular economy in the Chemicals & Materials segment. He noted that OMV and Borealis would use their expertise in mechanical and chemical recycling of plastics to take a leading role in the global circular economy.
Stern said that for 2022, OMV proposed its highest ever regular dividend of EUR 2.80 and a special dividend of EUR 2.25, and that the company modified its dividend policy to distribute approximately 20 to 30 percent of cash flow from operating activities if sufficient funds are available and the leverage ratio is below 30 percent. In earlier statements, Stern described plastic waste as a valuable resource and feedstock for the future, and said OMV offers chemicals and materials based on renewable feedstock, and mechanically and chemically recycled feedstock. He said that circular economy is a solution to energy and resource challenges, that partnerships across the supply chain are important for future industry development, and that regulatory and policy frameworks in Europe are helpful for starting pilot projects.
Source: AI-verified profile updated from Alfred Stern's recent appearances.
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Transcript (10 segments)
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Interviewer0:01
I'm talking now with the chief executive officer of Borealis. Alfred Stern joins me now. Thank you so much, Alfred. Of course, huge partner here and a family member almost in Abu Dhabi with your long-term partnership and a 20-year congratulations partnership with Borouge. Tell me again, how important is it when we look now in 2018 that that partnership has been in place and in a way you're almost starting again another leap forward? There's lots of opportunities.
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Alfred Stern0:26
Yeah, that's right. We started the Borealis joint venture actually in 1995. We created Vision 2005 and we wanted to increase our business outside of Europe, and this is where the partnership with Adnoc started, and it has developed in a great way over the last 20 years, starting up Borouge 1, 2, and 3. And I think the key of the success is really the great partnership between Adnoc and Borealis and the people that we have in Borouge. Out of such a partnership is always that you develop ways how to discuss even the most difficult things, that you create the trust, and that you move forward, that you're better than your competitors in this discussion. And I think this is what we have really achieved over 20 years. We have of course also had many challenges, but we were able to move those forward. And now we will take the next leap. We have already commissioned the fifth polypropylene plant that will be built, and we are getting close to Borouge for commissioning there. We are in the pre-feed study, and we will make another jump in the capacity on Borouge.
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Interviewer1:35
Now, of course, a lot of your technology and really that very specialized technology that you brought here to this partnership is absolutely essential. But again, here in Abu Dhabi, it's about building capacity for the people here in Abu Dhabi, building the Innovation Center, and really, I think, holding on to more intellectual property as well. It's not just building training and skills, it's really the patents and all of that. You must be very proud of the work that you've been doing in that joint venture.
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Alfred Stern2:01
It is, it is very important. And I have to point out, it's really the people that are at the center always of this. So it's important that we increase the number of local nationals here working in Borouge, having leadership positions in the company. And I think we're actually very successful in Borouge doing that. A significant amount of our management is local nationals. And also in the Innovation Center, we get more and more nationals. And this is very important because researchers have to be there for a long time because they have to have depth of know-how, competence, knowledge, and you can only develop that with the people here. And in the end, value creation through innovation, even if we have a good feedstock position here, value creation through innovation will be driving the success of Borouge in the long run.
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Interviewer2:51
Now it must be very exciting to be part of the Ruwais complex. And when we look at the plans and we've heard about these plans here, particularly in 2018, the big leap forward, the big world-class which it is at the moment, but it's even going to be bigger. It's going to be the biggest world-class integrated petrochemical and refinery complex. You're almost a sitting tenant, a first tenant in there. So it must be very exciting to actually be part of this going forward.
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Alfred Stern3:15
It's super exciting to be part of this. We enjoyed the journey up until here, and we are really looking forward to also support, promote, and try to pave the way forward together with Adnoc in our Borouge joint venture. Borouge 1, 2, 3 today is already the world's largest site for polyolefin production, and we will increase the capacity even more with Borouge. And of course, located next to the operations of Adnoc refining, this gives huge opportunities for synergies, for driving integration, and for being even more cost competitive and be a leading supplier to our customers in Asia, in the Middle East, across the world.
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Interviewer4:08
Now here at ADIPEC 2018, we're seeing more visibility from the downstream. I bet that pleases you very much here. And do you think this is actually a good move to make sure that it's more wholly represented here at ADIPEC 2018?
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Alfred Stern4:18
Yes, we are very pleased about this to participate here, to make a contribution. And it reflects reality. We are seeing that the percentage of oil that is used into petrochemicals is continuously increasing, and it can be up to 20, 25 percent in the next couple of years. And this is why it's becoming increasingly important. Of course, it's a fantastic feedstock for petrochemicals where we can create more value going further downstream. It's an important activity here locally, but it requires innovation, it requires the right people. And I think we make a good contribution there with Borouge, and we hope that we continue to be as successful as we were in the past.
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Interviewer5:09
And for ADIPEC 2018, it's good you're meeting lots of people here. It's important that you're here.
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Alfred Stern5:11
Absolutely. A great event and so many meetings. It's really a fantastic place because all the key players of the industry are here. It is a fantastic moment. Normally during the year you would need to travel so much to see and meet all those people. This is a great opportunity here to set that up in the exchange because I think future development in our industry will require bigger cooperation, more partnerships across the supply chain. And the starting point for that is to start talking to each other, exchange information, and understand where opportunities and challenges are so that we can address those and drive them forward.
