Abu Dhabi Chemicals Derivatives Company, better known as Ta’ziz, and Reliance Industries, India's largest private petrochemicals company, are forming a joint venture to develop a major chemicals project at the Ta’ziz industrial chemicals zone in Ruwais.
The joint-venture, named Ta'ziz EDC & PVC, will construct and operate a chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) plant with an investment of more than $2 billion, Adnoc said on Tuesday.
Chlor-alkali enables the production of caustic soda, crucial to the alumina refining process while EDC is used in the production of PVC, a high strength thermoplastic material used to manufacture a wide range of industrial and consumer products such as pipes, windows fittings, cables, films and flooring.
The production of Chlor-alkali, EDC and PVC will create export opportunities in target markets in South-East Asia and Africa, as well as provide local industry with a source of critical raw materials manufactured in the UAE for the first time, strengthening in-country value, Adnoc said.
The venture, which is subject to regulatory approvals, marks the first production of these chemicals in the UAE and will enable the substitution of imports and the creation of new local value chains.
It will also meet the growing demand for these chemicals globally, Adnoc said.
The Ta’ziz Industrial Chemicals Zone is a joint venture between Adnoc and Abu Dhabi's ADQ.
“This strategic partnership with Reliance Industries builds on the strong and deep-rooted bilateral ties between the UAE and India, and highlights the attractive and compelling value proposition offered by Ta’ziz as we grow a globally competitive industrial ecosystem,” Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc managing director and group chief executive said.
"This new joint venture which will manufacture critical industrial raw materials for the first time in the UAE, supporting our national strategy to empower the industrial sector to become the driving force of a truly dynamic economy over the next 50 years."
The joint venture also marks a major milestone in Adnoc’s downstream expansion and the development of the Ta’ziz Industrial Chemicals Zone, he said. It is expected to help to strengthen domestic supply chains, drive in-country value and hasten the UAE’s economic diversification.
Reliance Industries chairman and managing director Mukesh Ambani said India’s need for PVC, also known as vinyl, to propel its growth and the value from the abundantly available feedstock in UAE "provide a win-win partnership for both companies".
"Close co-operation in the region, based on shared objectives, is key as we optimise resources and work together to enrich the lives of our citizens,” he said.