Reliance Industries, TA’ZIZ sign USD2B chemical JV in Ruwais
India’s Reliance Industries Limited (RIL) and Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) 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 USD2 billion.
Representing the first production of these chemicals in the United Arab Emirates (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 Middle East and North Africa (MENA) region.
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 chemical 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.
The Ta’ziz Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.
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, 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 H.E. 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.”
“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,” said Ambani.
“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. 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.