Reliance Industries Limited and Abu Dhabi National Oil Company (ADNOC) have signed an agreement to start Ethylene Dichloride (EDC) production in Ruwais. The new unit will enable RIL to procure EDC, which is primarily used as a raw material for manufacturing Polyvinyl Chloride (PVC), a polymer product used widely in housing and agriculture sectors of India.
Currently, RIL is operating its three PVC manufacturing units in Hazira, Dahej and Vadodara having installed capacity of 410, 360 and 80 Tonnes per annum respectively. The planned joint venture will enable expansion of India’s PVC capacity to cater to the tremendously growing domestic demand and will allow ADNOC to strengthen its downstream portfolio and gain access to international market.
This Joint Venture is a combination of accessible feedstock (Ethylene) and energy from the UAE backed with Reliance’s execution capabilities and the booming domestic PVC market. As per the pact, ADNOC would supply ethylene and provide RIL with access to its infrastructure at Ruwais in Abu Dhabi while RIL will offer operational expertise.