Abu Dhabi Chemicals Derivatives Company, also known as TA’ZIZ, and Reliance Industries Limited (RIL) have agreed to launch a new world-scale chemical production partnership.
The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility in the TA’ZIZ Industrial Chemicals Zone with an investment of more than $2 billion.
Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally, a statement said.
The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ.
The project builds on ADNOC and Reliance’s long-standing strategic partnership and is Reliance’s first investment in the MENA region.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and managing director and group CEO of ADNOC, said: “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.
“We are delighted to partner with Reliance Industries in 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.”
Reliance Industries chairman and managing director, Mukesh D Ambani, added: “This joint venture… will further cement the long-standing and valued relationship between India and the UAE. We are happy that we will be setting up the first projects in the vinyl chain in the UAE at TA’ZIZ Industrial Chemicals Zone, which is being developed into a global hub for chemicals.
“India’s need for PVC to propel its growth, and the value from the abundantly available feedstock in UAE, provides a win-win partnership for both companies. Close cooperation in the region based on shared objectives is key as we optimise resources and work together to enrich the lives of our citizens.”
Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology, which has the goal to raise the UAE’s industrial sector’s contribution of national GDP to AED300 billion by 2031.
The TA’ZIZ Industrial Chemical Zone projects are currently in the design phase with project start-up targeted in 2025.
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