Wednesday 29 November 2023

UAE investor Shaheen joins $2bn Taziz-Reliance petchem JV

ABU DHABI, May 12, 2022

Abu Dhabi Chemicals Derivatives Company (Ta’ziz) has announced that Shaheen Chem Holdings Investment (Shaheen) has signed up a strategic partner in the Ta’ziz EDC & PVC, a joint venture between Ta’ziz and Indian multinational conglomerate Reliance Industries Limited, that will construct and operate a world-scale chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) facility in Ruwais region of the emirate.
The project is set to come up at the Ta’ziz Industrial Chemicals Zone, which had been jointly set up by ADNOC and ADQ. 
On completion, the project which is being set up at an investment of more than $2 billion, will supply local manufacturers, replacing chemicals currently imported, while also exporting to meet growing demand for these chemicals globally. 
Ta’ziz will provide new opportunities for local manufacturers, supporting growth of their knowledge and capabilities, catalysing local industrial development.
Through this tie-up, Shaheen brings extensive knowledge of the local market and joins the project with a focus on utilizing production for use in local supply chains. 
The agreement marks the first direct investment by a privately-owned UAE company in the Ta’ziz Industrial Chemicals Zone. 
It also follows the investment agreements between Ta’ziz and eight UAE-based investors in December 2021, which marked the first domestic Public Private Partnership (PPP) in Abu Dhabi’s downstream and petrochemicals sector.
Ta’ziz Acting CEO Khaleefa Yousef Al Mheiri said: "We are delighted to welcome Shaheen as a strategic partner in the company. This strategic agreement further consolidates Ta’ziz’s position as the sought-after partner for local and international investment in the UAE’s chemicals industry."
"The partnership supports our national strategy to drive the growth and diversification of the country’s industrial base, strengthen domestic supply chains and enable the private sector to "Make it in the Emirates", in line with the leadership’s wise directives," he added.
The chemicals to be produced by the Ta’ziz  EDC and PVC project have a wide range of industrial applications and will create opportunities for export, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time.
Ta’ziz comprises three zones, the first of which is an Industrial Chemicals Zone that will host chemicals production, with seven world-scale projects already in the design phase. 
The second is a Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Chemicals Zone into consumable products. The third is an Industrial Services Zone that will house a variety of companies providing the services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex.
Investment in the production of chemicals is a priority for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology, which aims to raise the UAE’s industrial sector’s contribution of national GDP to AED300 billion by 2031. Chemicals are an attractive sector given projected demand growth globally and the opportunity local production creates to grow the UAE’s industrial base.
Chlor-Alkali enables the production of caustic soda, crucial to the production of aluminum, and EDC is used in the production of PVC for a wide range of industrial and consumer products including pipes, windows, cables, films and flooring.
Shaheen Managing Director Walid Azhari said: "We are honored to partner with Ta’ziz and Reliance in this world class industrial plant which will include the largest Chlor Alkali plant in the world. We are looking forward to working with our partners during the development, construction and operation stages of the project."
"This project will be the cornerstone for many exciting downstream opportunities which will create a whole new industrial cluster in the UAE, in line with the Abu Dhabi Economic Vision 2030," he stated.
All projects in the Ta’ziz Industrial Chemicals Zone are subject to customary regulatory approvals.-TradeArabia News Service


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