Reliance, Abu Dhabi-based TA’ZIZ form joint venture for $2 billion chemical projects in Ruwais

The joint venture, named TA’ZIZ EDC & PVC, will be a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais

FP Staff December 07, 2021 19:05:07 IST
Reliance, Abu Dhabi-based TA’ZIZ form joint venture for $2 billion chemical projects in Ruwais

The signing of the agreement was overseen by RIL Chairman and MD Mukesh Ambani and UAE Industry Minister Dr Sultan Ahmed Al Jaber. Moneycontrol

Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) on December 7 announced the launch of a strategic joint venture with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) for chemical projects worth $2 billion in Ruwais, a town located 240 km to the west of Abu Dhabi City.

"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," RIL said in a statement.

The joint venture, named ‘TA’ZIZ EDC & PVC’, will be a "world-scale chemical production partnership" at the TA’ZIZ Industrial Chemicals Zone in Ruwais.

The project is expected to support TA’ZIZ mission to diversify the UAE’s economy and accelerate industrial development, as it would enable local supply chains through the production of new chemicals in the country.

The joint venture further boosts the long-standing strategic partnership between the State-owned Abu Dhabi National Oil Company (ADNOC) and RIL in the Middle East and North Africa (MENA) region.

The signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by UAE Industry Minister Dr Sultan Ahmed Al Jaber, who is also the ADNOC Managing Director and Group CEO; and RIL chairman and MD Mukesh Ambani.

"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," Dr Al Jaber said.

"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," the minister added.

This joint venture marks a major milestone in ADNOC’s downstream expansion and the development of the TA’ZIZ Industrial Chemicals Zone, Al Jaber further said, noting that it will help "strengthen domestic supply chains, drive in-country value and accelerate the UAE’s economic diversification".

Ambani, while commenting on the launch of the joint venture, said it will 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," the RIL chief said.

“India’s need for PVC to propel its growth, and the value from the abundantly available feedstock in the 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.," Ambani added.

The chemicals that will be produced by the new venture have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets.

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 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.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost

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