EGA signs supply agreement to build chemical complex at KIZAD

KIZADEmirates Global Aluminium (EGA) has signed a supply agreement with Shaheen Chem Investments LLC to ease Shaheen’s construction of a chemical complex at Khalifa Industrial Zone Abu Dhabi (KIZAD)

Once it starts production early next decade, Shaheen’s ethylene dichloride and caustic soda plant will supply all its caustic soda output to EGA’s Al Taweelah alumina refinery for a period of 15 years.

According to EGA, this is seen to meet EGA’s needs for raw material.

Currently, the UAE imports all its polyvinyl chloride needs. The construction of the plant aims to boost the UAE’s production of caustic soda, an important raw material in industries from petroleum products to chemicals manufacturing as well as alumina refining. The new plant will be the first in the UAE to produce ethylene dichloride, which will be sold to third parties.

The new plant is scheduled to be built near to EGA’s Al Taweelah site on a 300,000 sq m plot, with room for future expansion. The production capacity of the first phase of the plant is expected to reach 130,000 tonnes per year of caustic soda and 160,000 tonnes per year of ethylene dichloride.

Shaheen envisages a later second phase of the project, which is set to double caustic soda production capacity and begin production of vinyl chloride and polyvinyl chloride.

Rashed Al Suwaidi, chairman of Shaheen, said, “We now look forward to building our plant at KIZAD to supply EGA with the caustic soda it needs. We are also excited to become the first producer of ethylene dichloride in the UAE and to later bringing vinyl chloride and polyvinyl chloride production to the country.”

EGA is also building Al Taweelah alumina refinery next to its Al Taweelah aluminium smelter. The refinery will process bauxite ore into alumina, which is expected to meet 40 per cent of EGA’s alumina requirements.

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