Ta'ziz signs $2bn deal to build one of world’s largest PVC plants in UAE

The project, expected to be completed in late 2028, will produce enough of the product annually to provide water pipes for 10 million homes

Abu Dhabi's Ta'ziz announced the PVC contract at Adipec. Antonie Robertson / The National

Abu Dhabi's Ta'ziz has awarded a contract worth $1.99 billion to build the UAE's first integrated single-site polyvinyl chloride (PVC) production complex.

The project will be completed by the China National Chemical Engineering and Construction Corporation Seven (CC7) and will be among the world's top three PVC manufacturing centres, Ta'ziz said on Wednesday.

The plant, which will produce enough PVC – a synthetic plastic polymer – annually, to make water pipes for 10 million homes, is expected to be completed by the fourth quarter of 2028, it added.

It will produce 1.9 million tonnes per annum (mtpa) of marketable PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda – chemicals that are in demand by sectors such as construction, infrastructure, packaging and health care.

The engineering, procurement and construction (EPC) contract award marks “a key milestone in Ta'ziz's journey to build a globally competitive chemicals and transition fuels platform in the UAE”, said chief executive Mashal Al Kindi.

“Localising the production of critical chemicals like PVC and caustic soda will strengthen the country’s industrial resilience, generate considerable in-country value, unlock new downstream manufacturing opportunities and deliver significant long-term value to the nation’s economy,” Mr Al Kindi added.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, at the signing of the contract with Taziz chief executive Mashal Al Kindi and CC7's Pier Vincenzo Arrica and Xie Kun. Photo: Taziz

Founded in 2020 as a joint venture between Adnoc and Abu Dhabi's investment and holding company ADQ, Ta'ziz is a manufacturing, industrial services, logistics and utilities company that supports the production of chemicals and transition fuels.

In February, it awarded a contract worth $1.7 billion to Samsung E&A for the construction of one of the world’s largest methanol plants in Al Ruwais Industrial City in Al Dhafra region. The 1.8 mtpa plant will be the first methanol production centre in the UAE.

In its initial phase, Ta'ziz will produce 4.7 mtpa of chemicals by 2028. That includes methanol, low-carbon ammonia, polyvinyl chloride, ethylene dichloride, vinyl chloride monomer and caustic soda.

The PVC plant award follows recent EPC contracts for ammonia and methanol production facilities at Ta'ziz.

Once operational, the PVC complex will establish Ta'ziz as a major regional producer of PVC, EDC, VCM and caustic soda.

In the project's initial phase, Ta'ziz is expected to contribute $50 billion to the UAE economy and generate 20,000 construction jobs and 6,000 operational roles, it said.

“The platform will enable local manufacturers to produce hundreds of new end-products for the first time, supporting the UAE’s industrial growth and Adnoc's ambition to become a top three global chemicals player,” it said.

The PVC contract was announced at Adipec in Abu Dhabi.