TA’ZIZ and Sanmar Group Sign Long-Term Chemical Agreements
In a significant development for the UAE’s petrochemical sector, TA’ZIZ has entered into two long-term agreements with India’s Sanmar Group. These agreements, revealed during the ADIPEC 2025 conference, underscore the strengthening industrial collaboration between the UAE and India, marking a pivotal moment for both nations.
Details of the Agreements
TA’ZIZ will supply over 350,000 tonnes annually of ethylene dichloride (EDC) and vinyl chloride monomer (VCM) to Sanmar for a duration of up to ten years. The production will take place at the TA’ZIZ Chemicals Industrial Zone located in Al Ruwais, Abu Dhabi. The chemicals will then be exported to Sanmar’s facilities in Port Said, Egypt, and Cuddalore, India. This initiative represents the first instance of these chemicals being produced and exported from the UAE.
Strategic Importance
Mashal Al-Kindi, CEO of TA’ZIZ, emphasized that these agreements reflect the company’s dedication to becoming a reliable global supplier of high-quality petrochemicals. He noted that the partnership not only supports the UAE’s industrial diversification and export goals but also enhances the robust economic relationship between the UAE and India.
Vijay Sankar, Chairman of Sanmar Group, echoed this sentiment, highlighting the shared commitment to operational excellence, sustainability, and long-term growth between the two companies.
Future Prospects
The TA’ZIZ Industrial Chemicals Zone is projected to produce 4.7 million tonnes of chemicals annually upon completion in 2028. The PVC production complex, which will be the largest within the zone, is expected to have a capacity of 1.9 million tonnes per year, encompassing caustic soda, EDC, PVC, and VCM. Additionally, the zone will feature a 1 million tonne per year ammonia plant and a 1.8 million tonne per year methanol plant.
This agreement aligns with the UAE’s Operation 300Bn industrial strategy, which aims to bolster domestic manufacturing and enhance the country’s status as a global supplier of energy and chemicals. Through this collaboration, TA’ZIZ is poised to play a crucial role in the UAE’s non-oil industrial growth and establish itself as a trusted partner in international markets.
FAQs
What products will TA’ZIZ supply to Sanmar Group?
TA’ZIZ will supply ethylene dichloride (EDC) and vinyl chloride monomer (VCM) to Sanmar Group, totaling over 350,000 tonnes annually.
Where will the chemicals be produced?
The chemicals will be produced at the TA’ZIZ Chemicals Industrial Zone in Al Ruwais, Abu Dhabi.
How does this agreement benefit the UAE?
The agreement supports the UAE’s Operation 300Bn strategy, enhancing domestic manufacturing and reinforcing the UAE’s position as a global energy and chemicals supplier.
Conclusion
The partnership between TA’ZIZ and Sanmar Group marks a significant step forward for the UAE’s petrochemical industry, fostering international collaboration and supporting the nation’s industrial ambitions. As the TA’ZIZ Industrial Chemicals Zone develops, it is set to play a vital role in the future of the UAE’s economy and its global trade relationships.
The agreements between TA’ZIZ and Sanmar Group are part of a broader trend of increasing collaboration between the UAE and India in various sectors, particularly in energy and manufacturing. This partnership not only highlights the strategic importance of the petrochemical industry but also reflects the growing demand for chemical products in global markets. As countries seek to diversify their supply chains and reduce reliance on traditional sources, the UAE’s emerging role as a key supplier is becoming increasingly significant.
Furthermore, the establishment of the TA’ZIZ Chemicals Industrial Zone is expected to attract additional investments and partnerships, fostering innovation and technological advancements within the region. The zone is designed to enhance the competitiveness of the UAE’s industrial sector by providing state-of-the-art facilities and infrastructure, which can facilitate the production of a wide range of chemical products. This initiative aligns with the UAE’s vision to become a leader in sustainable industrial practices, contributing to both economic growth and environmental stewardship.
As the global demand for petrochemicals continues to rise, the successful implementation of these agreements could pave the way for further collaborations between TA’ZIZ and other international companies. This could lead to an expansion of the UAE’s petrochemical portfolio, ultimately strengthening its position in the global market and supporting its long-term economic objectives.
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