The Business Bytes
TBB BUREAU
MUMBAI, DEC 7, 2021
Billionaire Mukesh Ambani’s Reliance Industries Limited (RIL) and Abu Dhabi state-owned Chemicals Derivatives Company (TA’ZIZ) have agreed to start a more than $2 billion chemical production partnership in Ruwais, UAE.
The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ.
The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.
The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, RIL said in a statement.
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 chemical project is Reliance’s first investment in the Middle East and North Africa region. It is subject to regulatory approvals.
The signing of the joint venture terms was witnessed by 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. The joint venture terms were signed by Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Kamal Nanavaty, President Strategy and Business Development of Reliance Industries Limited.
“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,” said Dr. Al Jaber.
“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 added.
Commenting on the JV, 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. 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,” he added.
Chlor-alkali is used in the production of caustic soda, integral to alumina refining process. EDC is used to make vinyl chloride monomer, which, in turn, is utilised to manufacture PVC. And PVC is used to manufacture industrial and consumer products, including pipes and cables.
