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Chemical industry

Sunday
09 Nov 2025

Ta’Ziz Signs $2BN Deal to Build One of World’s Largest PVC Plants in UAE

09 Nov 2025  by thenationalnews.   
Abu Dhabi-based Ta’ziz has awarded a $1.99 billion contract to China National Chemical Engineering and Construction Corporation Seven (CC7) to build the United Arab Emirates’ first integrated single-site polyvinyl chloride (PVC) production complex. Announced on Wednesday during Adipec in Abu Dhabi, the project represents a major step in the country’s industrial expansion and will position the UAE among the world’s top three PVC manufacturing hubs.

According to Ta’ziz, the new plant will be completed by the fourth quarter of 2028 and will have an annual production capacity of 1.9 million tonnes. It will produce key chemical products including marketable PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda. These materials are essential for industries such as construction, infrastructure, packaging, and healthcare. The facility’s PVC output alone will be sufficient to manufacture water pipes for approximately 10 million homes each year.

Ta’ziz chief executive Mashal Al Kindi said: “Localising the production of critical chemicals like PVC and caustic soda will strengthen the country’s industrial resilience, generate considerable in-country value, unlock new downstream manufacturing opportunities and deliver significant long-term value to the nation’s economy.” He added that the engineering, procurement, and construction (EPC) contract marks “a key milestone in Ta’ziz’s journey to build a globally competitive chemicals and transition fuels platform in the UAE.”

Established in 2020 as a joint venture between Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi’s investment holding company ADQ, Ta’ziz focuses on manufacturing, industrial services, logistics, and utilities to support chemical and low-carbon fuel production. The PVC project forms part of the company’s broader strategy to enhance domestic production capacity and reduce import dependency in key chemical sectors.

Earlier this year, Ta’ziz awarded a $1.7 billion contract to Samsung E&A for constructing one of the world’s largest methanol plants in Al Ruwais Industrial City, located in the Al Dhafra region. The 1.8 million tonnes per annum (mtpa) methanol facility will be the first of its kind in the UAE. By 2028, the company plans to produce 4.7 mtpa of chemicals, including methanol, low-carbon ammonia, PVC, EDC, VCM, and caustic soda.

Once operational, the PVC complex will establish Ta’ziz as a major regional producer of core industrial chemicals. The project’s initial phase is projected to contribute about $50 billion to the UAE economy, while creating 20,000 construction jobs and 6,000 permanent operational roles.

Ta’ziz said the new platform will enable local manufacturers to produce hundreds of new downstream products for the first time, advancing the UAE’s industrial growth and supporting Adnoc’s ambition to become one of the top three global chemicals producers.

The collaboration with CC7 underscores growing industrial cooperation between the UAE and China and highlights the role of advanced manufacturing in supporting the region’s economic diversification and long-term sustainability goals.

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