UAE's TA’ZIZ and Reliance ink JV for $2 billion chemicals projects in Ruwais
Mumbai/IBNS: Reliance Industries Limited (RIL) has inked an agreement with Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) to launch ‘TA’ZIZ EDC & PVC’, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with an investment of more than $2 billion.
The plant will produce these chemicals for the first time in UAE, allowing import substitution and the creation of new local value chains, while also meeting growing demand for these chemicals globally.
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.
The RIL-TA’ZIZ joint venture were signed by Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Kamal Nanavaty, President Strategy and Business Development of Reliance Industries Limited.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Reliance Industries Chairman and Managing Director, Mukesh D. Ambani were present at the signing.
The JV terms are subject to regulatory approval.
Dr. Al Jaber called the JV a result of deep-rooted bilateral ties between Indian and UAE. The production of the critical industrial raw materials in UAE is part of UAE's "national strategy to empower the industrial sector to become the driving force of a truly dynamic economy over the next 50 years.”
“This joint venture marks a major milestone in ADNOC’s downstream expansion and the development of the TA’ZIZ Industrial Chemicals Zone. It will help strengthen domestic supply chains, drive In-Country Value and accelerate the UAE’s economic diversification, in line with the leadership’s wise directives,” he noted.
Highlighting the importance of the project, RIL Chairman Mukesh Ambani said 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, he added.
"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,” he said.
Chlor-Alkali enables the production of caustic soda, crucial to the alumina refining process. EDC is used in the production of PVC, which is used to manufacture a wide range of industrial and consumer products including pipes, windows fittings, cables, films and flooring, the joint media release said.
The production of Chlor-Alkali, EDC, and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time, strengthening In-Country Value, it read.
According to the statement, Tuesday's agreement builds on significant interest in TA’ZIZ received from local and international investors in recent months.
The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.
TA’ZIZ comprises three zones, the first of which is an Industrial Chemicals Zone that will host chemicals production, with seven world-scale projects already in the design phase.
The second is a Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Chemical Zone into consumable products and, finally, an Industrial Services Zone that will house a variety of companies providing the necessary services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex.