The state-owned chemicals derivatives firm (TA’ZIZ) of Abu Dhabi and Reliance Industries, headed by billionaire Mukesh Ambani, have agreed to create a $2 billion chemical manufacturing cooperation in Ruwais, Abu Dhabi.
According to a regulatory filing made today to the stock markets by Reliance Industries, the joint venture, known as ‘TA’ZIZ EDC & PVC,’ would build and run a Chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC) production plant. The strategic partnership seeks to sell the materials domestically and export them to key markets in Southeast Asia and Africa.
TA’ZIZ released a statement regarding the venture saying, “This strategic partnership with Reliance Industries builds on the strong and deep-rooted bilateral ties between the UAE and India and highlights the attractive and compelling value proposition offered by TA’ZIZ as we grow a globally competitive industrial ecosystem”
Reliance’s first initiative in the MENA area is this project. In November of last year, TA’ZIZ said that it had identified prospective investment projects worth more than $5 billion in the proposed Ruwais Derivatives Park, for which the cooperation will serve as a catalyst.
The initiative, which will be the first to produce these chemicals in the United Arab Emirates (UAE), will allow imports to be replaced and new local value chains to be established, while also satisfying worldwide demand for these compounds. The Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Quality (ADQ) control 60 percent and 40 percent of the TA’ZIZ industrial chemicals zone, respectively.
Mukesh Ambani, Chairman, Reliance Industries said in his statement “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.”
Reliance’s shares were valued at 0.77 percent higher with the price of ₹ 2,381.60 per piece on Tuesday, December 7.