Abu Dhabi's Ta'ziz has signed two long-term sales agreements of up to 10 years with India's Sanmar Group for the supply of key raw materials used in the manufacture of industrial and chemical products.
Under the terms of the agreements, signed at Adipec in Abu Dhabi this week, Ta'ziz will supply Sanmar with more than 350,000 tonnes per annum of ethylene dichloride (EDC) and vinyl chloride monomer (VCM), the company said on Thursday.
The two products will be produced at the Ta'ziz Chemicals Industrial Zone in Al Ruwais Industrial City, Abu Dhabi. It will be the first time either chemical has been exported from the UAE.
The total value of the deal was not disclosed.
EDC and VCM are critical raw materials in the production of polyvinyl chloride (PVC), a thermoplastic material used in a wide range of industrial and consumer applications.
They will support Sanmar Group’s PVC production in Egypt's Port Said and India's Cuddalore, Ta'ziz said.
“These agreements underscore Ta'ziz’s commitment to become a reliable supplier of high-quality petrochemical products to global markets,” said chief executive Mashal Al Kindi.
They “build on the existing robust economic ties between the UAE and India offering further long-term collaboration opportunities and value addition between the two partners”, he added.
The economic ties between the UAE and India have grown after the signing of the Comprehensive Economic Partnership Agreement (Cepa) between the two countries in 2022.
Emirates NBD, Dubai's largest bank by assets and Abu Dhabi's International Holding Company recently announced new deals to invest in Indian companies to expand their portfolio in the South Asian country amid the strengthening of ties.
Founded in 2020 as a joint venture between Adnoc and Abu Dhabi's investment and holding company ADQ, Ta'ziz is a manufacturing, industrial services, logistics and utilities company that supports the production of chemicals and transition fuels.
Its industrial zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028.
EDC and VCM will be manufactured at Ta'ziz's PVC production complex, the zone’s largest plant, which has a marketable production capacity of 1.9 mtpa across caustic soda, EDC, PVC and VCM.
The zone will also include a one mtpa ammonia plant and a 1.8 mtpa methanol plant, Ta'ziz said.
Ta'ziz is supporting UAE's industrial strategy to boost the sector's contribution to the country's gross domestic product to Dh300 billion ($81.68 billion) by 2031.
