Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) and Reliance Industries Limited (RIL), have agreed 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.
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.
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 signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by His Excellency 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, Mr. Mukesh D. Ambani.
The joint venture terms were signed by Mr. Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Mr. Kamal Nanavaty, President Strategy and Business Development of Reliance Industries Limited.
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H.E. Dr. Al Jaber, 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.
“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.”
Mr. Ambani, said: “This joint venture between Reliance Industries Limited and TA’ZIZ will further cement the long standing and valued relationship between India and the UAE.
“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.”
The chemicals have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets.
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 agreement builds on significant interest in TA’ZIZ received from local and international investors in recent months. 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. 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.
The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.
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