December 19, 2025 11:14

Borealis Kallo, the Dutch subsidiary of Austrian group Borealis, has reached a settlement with the Italian IREM Group regarding the dispute that began three years ago during the construction of a propane dehydrogenation (PDH) unit at its site in Kallo, Belgium. The terms of the settlement have not been disclosed.

The events date back three years, when—following an investigation into alleged irregularities in the use of foreign labor—Borealis decided to terminate contracts with three IREM Group companies and assign the work to another contractor, a decision that was challenged by the Italian group.

Borealis reaffirmed in a statement that the termination of the contracts was carried out “in accordance with the contractual provisions and applicable law.” The agreement will lead to the conclusion of arbitration proceedings and allow both parties to move forward.

IREM acknowledged that Borealis Kallo was forced to terminate the contracts as soon as an investigation was launched into potential violations of labor and social security law.
However, the group reiterated that it had not committed any of the alleged breaches reported in the Belgian press and had always fully cooperated with the Belgian authorities to clarify its position and restore its reputation.
The company further underlined its long-standing commitment to providing its workers with the best possible employment conditions, emphasizing that respect for workers’ rights, dignity and well-being are among its core values.

As for project progress, Borealis expects to start up the new unit in the second quarter of 2026. Once operational, the PDH plant will have a production capacity of 750,000 tonnes of propylene per year, to be used in the synthesis of polypropylene.

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