Reliance and UAE’s Ta’ziz tie up for $2bn chemical project
09:12, 8 December 2021
Reliance Industries announced a strategic joint venture with Abu Dhabi-based chemicals derivatives company RSC (Ta’ziz) for chemical projects worth $2bn in Ruwais in the United Arab Emirates.
The two companies decided to form Ta‘ziz EDC & PVC, a chemical production partnership company at the Ta’ziz industrial chemicals zone, which would construct and operate a Chlor-Alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility.
“This joint venture between Reliance Industries and Ta’ziz will further cement the long-standing and valued relationship between India and the UAE,” said Mukesh Ambani, chairman of Reliance Industries in the company statement. Reliance added that it plans to develop Ta’ziz industrial zone into a global hub for chemicals.
Shares of Reliance Industries ended at INR2418.3, up 1.5% from their previous close on the National Stock Exchange.
First investment in the Emirates
“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,” added Ambani.
The venture is the first investment by the oil-to-telecom conglomerate in the Emirates, the statement added. Reliance had stated its plans to invest in West Asia even after a deal with Saudi Aramco in its oil-to-chemicals business was put for re-consideration earlier last month.
Representing the first production of Chlor-Alkali, EDC and PVC in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting the growing demand for these chemicals globally, the statement added.
A priority sector
Ta’ziz industrial chemicals zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ, a government partner in investments. The Ta’ziz projects are currently in the design phase with projects to start in 2025.
The production of Chlor-Alkali, EDC, and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as provide local industry with a source of critical raw materials manufactured in the UAE.
Chemicals is a priority sector for the UAE’s industrial growth strategy, the Reliance statement said.