Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) and Reliance Industries Limited (RIL), had announced their partnership in June of this year. Now, as per the latest developments, the companies have agreed to launch a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
With a $2 billion investment, the new joint venture will build and run a chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC) production facility. The chemicals are used in a wide range of industries, enabling local supply chains to function and meet growing demands in key export markets.
It is expected that Chlor-Alkali, EDC, and PVC production will open up the export potential to Southeast Asia and Africa, as well as provide local industry with a source of vital raw materials made in the UAE for the first time, boosting In-Country Value. The project is Reliance’s first investment in the MENA region.
“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. 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.”His Excellency Dr. Al Jaber, UAE Minister of Industry and Advanced Technology
Chemicals are a priority area for the UAE’s industrial growth strategy, which is spearheaded by the Ministry of Industry and Advanced Technology and aims to increase the UAE’s industrial sector’s contribution to national GDP to AED300 billion by 2031. Chemicals are an appealing market because of predicted global demand growth and the opportunity for local production to enable new supply chains.
“This joint venture between Reliance Industries Limited and TA’ZIZ 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.”Mr. Mukesh Ambani
The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ. The facility, which will be the first of its type in the UAE, will enable the substitution of imports and the creation of new local value chains. It will also play a significant role in meeting the growing demand for these chemicals globally.
The creation of caustic soda, which is necessary for the alumina refining process, is attained by chlor-alkali. PVC, which is used to make a wide range of industrial and consumer products including pipes, window fittings, cables, films, and floors, is made from EDC.