Subject Reliance Industries | RIL | Joint Ventures in India
Twesh Mishra | New Delhi last updated on December 8, 2021 02:02 IST
Reliance Industries (RIL), led by Mukesh Ambani, is consolidating its first investment in West Asia with the Abu Dhabi chemical derivatives company RSC (trade name TA'ZIZ). A RIL statement stated that the two companies have agreed to launch TA'ZIZ EDC and PVC in the TA'ZIZ Industrial Chemical Zone in Ruwais, Abu Dhabi, a chemical production partnership.
"The new joint venture (JV) will build and operate chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facilities, with an investment of more than 2 billion U.S. dollars," the RIL statement said.
The statement added that this is RIL's first investment in the region. This is consistent with RIL's statement of investment in West Asia when its petrochemical equity sale with Saudi Aramco was put on hold.
According to RIL executives, the shareholding structure of TA'ZIZ EDC & PVC has not yet been finalized.
The TA'ZIZ Industrial Chemical Zone project is currently in the design stage, and the project is scheduled to start in 2025. This is the first production of these chemicals in the United Arab Emirates (UAE).
"The project will be able to replace imports and create a new local value chain while meeting the growing global demand for these chemicals," the RIL statement read.
Main features: RIL's first investment in West Asia, the RIL-TA'ZIZ joint venture company, construction and operation of chlor-alkali, dichloroethane and polyvinyl chloride production facilities. This will be the first project in the UAE vinyl chain and will be created for export to the UAE Opportunities in Southeast Asia and Africa
Commenting on the partnership, UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber said: “This new joint venture will produce key industrial raw materials in the UAE for the first time, supporting our national strategy and making the industrial sector a real driving force in the next 50 years. A vibrant economy."
Al Jaber is also the Managing Director and Group Chief Executive Officer of Abu Dhabi National Oil Company (ADNOC).
"The joint venture marks an important milestone in the downstream expansion of ADNOC and the development of the TA'ZIZ Industrial Chemical Zone. It will help strengthen the domestic supply chain, drive domestic value, and accelerate economic diversification in the UAE based on the wise instructions of the leadership ," Al Jaber added.
RIL Chairman said: "We will establish the first vinyl chain project in the UAE TA'ZIZ Industrial Chemical Zone, which is developing into a global chemical center."
"India's demand for PVC is driving its growth, and the UAE's rich raw material value provides a win-win partnership for the two companies," Ambani added.
Chlor-alkali can produce caustic soda, which is critical to the alumina refining process.
EDC is used to produce PVC, and PVC is used to manufacture various industrial and consumer products, including pipes, window fittings, cables, films, and flooring. The production of chlor-alkali, EDC and PVC will create opportunities for export to Southeast Asian and African markets.
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