Reliance Industries, TA'ZIZ in $2-bn JV for chemical production partnership

Mukesh Ambani-led Reliance Industries (RIL) is firming up its first investment in West Asia with Abu Dhabi Chemical Derivatives Company RSC (trading as TA’ZIZ). An RIL statement said the two have agreed to launch TA’ZIZ EDC & PVC, a chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi.

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

This is the first investment by RIL in the region, the statement added. This is in line with RIL’s announcement to invest in West Asia when its oil–to-chemicals stake sale deal with Saudi Aramco was put on the back burner.

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

The TA’ZIZ Industrial Chemicals Zone project is currently in the design phase, with project start-up targeted in 2025. It represents 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,” read the RIL statement.

MAIN FEATURES

• RIL’s first investment in West Asia
• RIL-TA’ZIZ joint venture to construct and operate a chlor-alkali, ethylene dichloride and polyvinyl chloride production facility
• This will be the first project in the vinyl chain in the UAE
• Will create opportunities for export to markets in Southeast Asia and Africa

Commenting on the partnership, UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber said, “This new JV will manufacture critical industrial raw material 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.”

Al Jaber is also the managing director and group chief executive officer of Abu Dhabi National Oil Company (ADNOC).

“This JV 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,” added Al Jaber.

RIL Chairman said: “We will be setting up the first project 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 the UAE provides a win-win partnership for both companies,” added Ambani.

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, window fittings, cables, films, and flooring. The production of chlor-alkali, EDC, and PVC will create opportunities for export to markets in Southeast Asia and Africa.