Reliance Industries (RIL) share price gained nearly 1 percent in the early trade on June 30, a day after the company announced an agreement with Abu Dhabi National Oil Company (ADNOC) for setting up a world-scale chemical facility at TA’ZIZ in Ruwais.
"Abu Dhabi National Oil Company (ADNOC) announced that Reliance Industries, has signed an agreement to join a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi," an RIL press release said on June 29.
The agreement capitalises on the growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders, it added.
The project will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ.
Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant, with the capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually.
"We at Reliance are excited to enter into a strategic partnership with ADNOC for establishing a world-class and world-scale chemical project at TA’ZIZ in Ruwais. This important milestone further bolsters our long-standing relationship with ADNOC, reaffirming our faith in the global vision of the UAE’s wise leadership," said Mukesh D Ambani, Chairman and Managing Director, Reliance Industries.
"It is also yet another testimony to the enormous potential in advancing India-UAE cooperation in value enhancement in the energy and petrochemicals sectors. The project will manufacture ethylene dichloride, a key building block for the production of PVC in India. This is a significant step in globalising Reliance’s operations, and we are proud to partner with ADNOC in this important project for the region," he added.
Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC, which has a wide range of applications across housing, infrastructure and consumer goods.
The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa.
At 0916 hours, Reliance Industries was quoting at Rs 2,098.90, up Rs 11.70, or 0.56 percent, on the BSE.
The share touched a 52-week high of Rs 2,368.80 on September 16, 2020 and a 52-week low of Rs 1,696 on June 30, 2020. It is trading 11.39 percent below its 52-week high and 23.76 percent above its 52-week low.Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.