EGA Agreement Results in New Caustic Soda Plant at KIZAD

EGA Agreement Results in New Caustic Soda Plant at KIZAD

UAE’s Emirates Global Aluminium PJSC (EGA) revealed yesterday the signing of a long-term supply agreement with Shaheen Chem Investments LLC for the supply of ethylene dichloride and caustic soda to EGA’s Al Taweelah alumina refinery. As a result of the agreement, Shaheen Chem will soon commence planning for and construction of a chemical complex adjacent to EGA’s site at Khalifa Industrial Zone Abu Dhabi (KIZAD).

The agreement, which has a term of 15 years, will have Shaheen Chem fulfill the entirety of EGA’s needs for both chemicals. In addition, Shaheen Chem’s plant will be the first in the UAE to produce ethylene dichloride, which is a precursor chemical used in the manufacture of polyvinyl chloride (PVC), which is widely used in the production of piping. The ethylene dichloride produced at the plant will be marketed to third parties per the EGA press release.

EGA’s managing director and CEO Abdulla Kalban greeted news of the deal with enthusiasm.

“The construction of a caustic soda plant next to our alumina refinery guarantees our supply of this vital raw material at competitive prices for years to come. I am pleased that EGA’s demand for caustic soda is creating further industrial expansion in Abu Dhabi, continuing EGA’s long-standing contribution to the diversification of our economy as we grow our own business.”

Shaheen’s Chairman Rashed Al Suwaidi pointed out the historic nature of the deal in question.

“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.”

Shaheen Chem plans to build the plant on a 74-acre site at KIZAD. Initial nameplate capacities will be 130 thousand metric tons per year of caustic soda, and 160 thousand metric tons per year of ethylene dichloride, with plans to double caustic soda production and begin production of vinyl chloride and polyvinyl chloride at a later date.

Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting. EGA turned out a record 2.5 million metric tons of primary aluminium in 2016.