New Delhi: Reliance Industries Ltd (RIL) and UAE's oil behemoth Abu Dhabi National Oil Company (ADNOC) have announced that they have signed an agreement to develop a giant petrochemical joint venture to produce chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at Ta'ziz Industrial Complex in Ruwais, the company said in an official statement. "The agreement capitalises on growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders," said the statement.
The project will be constructed in the Ta'ziz Industrial Chemicals Zone, which is a joint venture between ADNOC and state holding company ADQ.
Under the terms of the agreement, Ta'ziz and Reliance will construct an integrated plant, with capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually, said the statement. Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC. PVC has a wide range of applications across housing, infrastructure and consumer goods.
"The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa. Production of these chemicals will create opportunities for local industry to source critical raw materials in the UAE for the first time, creating additional opportunities for in-county value," said the statement.
Ta'ziz is aiming to attract around US$ 5 billion into Ruwais and is in discussions with potential partners at the park. The park is slated to start operations in 2025. ADNOC plans to invest US$ 45 billion with partners to develop its downstream operations in Ruwais. "ADNOC is gearing up for growth with Ta'ziz, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investment in excess of AED 18 billion and a number of further growth projects in the downstream and industry sector," said the statement.
"In line with our 2030 strategy, we look forward to creating further opportunities across the entire Ta'ziz ecosystem for the next generation of local industry. The domestic production of critical industrial raw materials strengthens our supply chains, drives In-Country Value and accelerates the UAE's economic diversification," said Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
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