Abu Dhabi state-owned Chemicals Derivatives Co., TA’ZIZ, and Indian conglomerate Reliance Industries have agreed to start a more than $2 billion chemical production partnership in Ruwais, Abu Dhabi, the chemicals company said in a statement on Tuesday.
The joint venture, called TA’ZIZ EDC & PVC, will construct and operate a chlor-alkali, ethylene dichloride and polyvinyl chloride production facility, it said.
The JV aims to export the materials to target markets in Southeast Asia and Africa as well as selling them domestically.
“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,” TA’ZIZ said.
TA’ZIZ was formed last year, also as a joint venture, by Abu Dhabi National Oil Co. and Abu Dhabi state-owned holding company ADQ, which own 60 percent and 40 percent respectively.
“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,” TA’ZIZ quoted Reliance’s billionaire chairman Mukesh Ambani as saying.
TA’ZIZ said in November last year it had chosen potential investment projects worth over $5 billion in the planned Ruwais Derivatives Park, for the development of which the JV is meant to act as a catalyst.
The project is Reliance’s first investment in the Middle East and North Africa region, TA’ZIZ said.