Reliance Industries and TA’ZIZ in $ 2 Billion Joint Venture for Chemical Production Partnership


Reliance Industries (RIL), led by Mukesh Ambani, confirms its first investment in West Asia with Abu Dhabi Chemical Derivatives Company RSC (under the name TA’ZIZ). A statement from RIL says the two have agreed to launch TA’ZIZ EDC & PVC, a chemical production partnership in the TA’ZIZ industrial chemicals zone in Ruwais, Abu Dhabi.

“The new joint venture (JV) will build and operate a production facility for chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC), with an investment of more than $ 2 billion,” said the RIL press release.

This is RIL’s first investment in the region, the statement added. This is in line with RIL’s announcement to invest in West Asia when its deal to sell oil-to-chemicals shares with Saudi Aramco was put on hold.

According to RIL executives, the capital structure of TA’ZIZ EDC & PVC has not yet been finalized.

The TA’ZIZ Industrial Chemicals Zone project is currently in the design phase, with a project start-up in 2025. It represents the first production of these chemicals in the United Arab Emirates (UAE).

“The project will enable import substitution and the creation of new local value chains, while meeting the growing demand for these chemicals on a global scale,” said the RIL statement.

MAIN FEATURES

  • RIL’s first investment in West Asia
  • RIL-TA’ZIZ joint venture for the construction and operation of a chlor-alkali, ethylene dichloride and polyvinyl chloride production plant
  • This will be the vinyl chain’s first project in the United Arab Emirates.
  • Create export opportunities to Southeast Asian and African markets

Commenting on the partnership, UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber said, “This new joint venture will manufacture critical industrial raw materials in the UAE for the first time, supporting our strategy. national strategy aimed at empowering the industrial sector to become the driving force. a truly vibrant economy over the next 50 years.

Al Jaber is also the Managing Director and CEO of the Abu Dhabi National Oil Company (ADNOC) group.

“This joint venture marks a major milestone in the downstream expansion of ADNOC and the development of the TA’ZIZ industrial chemicals zone. This will help strengthen national supply chains, generate value in the country and accelerate the economic diversification of the UAE, in line with the wise guidance of the leaders, ”Al Jaber added.

The President of RIL said: “We will set up the first vinyl chain project in the United Arab Emirates in the industrial chemicals zone of TA’ZIZ, which is emerging as a global hub for products. chemical. “

“India’s need for PVC to propel its growth, and the value of the raw material abundantly available in the UAE provide a win-win partnership for the two companies,” Ambani added.

Chlor-alkali allows the production of caustic soda, essential for the process of refining alumina.

EDC is used in the production of PVC, which is used to make a wide range of industrial and consumer products, including pipes, window fittings, cables, films and flooring. The production of chlor-alkali, EDC and PVC will create export opportunities to markets in Southeast Asia and Africa.

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