Reliance Industries Ltd. and Abu Dhabi Chemicals Derivatives Co. have agreed to set up a $2-billion joint venture at Ta'ziz Industrial Chemicals Zone in Ruwais, U.A.E.
The new entity will construct and operate a chlor-alkali, ethylene dichloride and polyvinyl chloride production facility, the Abu Dhabi-based company said in a statement.
The chemical project, the release said, is billionaire Mukesh Ambani-controlled Reliance's first investment in the Middle East and North Africa region. It is subject to regulatory approvals.
“India's need for PVC to propel its growth, and the value from the abundantly available feedstock in the U.A.E., provides a win-win partnership for both companies,” Ambani said at the signing.
Chlor-alkali is used in the production of caustic soda, integral to alumina refining process. EDC is used to make vinyl chloride monomer, which, in turn, is utilised to manufacture PVC. And PVC is used to manufacture industrial and consumer products, including pipes and cables.
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