Reliance Industries announced on Tuesday that it has entered into a joint venture with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) to set up a chemical production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais. The Mukesh Ambani-owned conglomerate informed that the new joint venture - TA’ZIZ EDC & PVC - will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility with an investment of more than $2 billion.
The TA'ZIZ Industrial Chemical Zone is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and the ADQ. The chemical zone projects are in the design phase with the expected date for resuming projects set for 2025.
The company informed that this would be its first investment in the Middle East and Northern Africa region. "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 Industries Chairman Mukesh Ambani stated.
Reliance Industries stated that chemicals is a priority sector for the United Arab Emirates' industrial growth strategy. This has been championed by its Ministry of Industry and Advanced Technology which aspires to raise the country's industrial sector's contribution of national GDP to AED300 billion by 2031.
The Mukesh Ambani-spearheaded conglomerate informed that the production of chlor-alkali, EDC and PVC would create export opportunities targetted in Southeast Asia and Africa. Additionally, it would provide local industry with a source of critical raw materials to be manufactured in the UAD for the first time.
Chlor-alkali is used in producing caustic soda which is crucial for the alumina refining process. EDC is used to produce PVC which is further used for manufacturing industrial and consumer products such as pipes, window fittings, cables, films and flooring essentials.
Reliance Industries' share closed 0.77 per cent higher at Rs 2,381.60 on the BSE and 0.82 per cent higher at Rs 2,382.00 on the NSE.