EGA signs deal for chemical complex, promotes Kizad expansion
Emirates Global Aluminium (EGA) has signed a long term supply agreement with Shaheen Chem Investments LLC within Abu Dhabi’s Khalifa Industrial Zone (Kizad), which will help spur expansion in the free zone
Emirates Global Aluminium (EGA) has signed a long term supply agreement with Shaheen Chem Investments LLC within Abu Dhabi’s Khalifa Industrial Zone (Kizad), which will help spur expansion in the free zone.
Upon completion, 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, meeting EGA’s needs for the raw material in its entirety.
Construction of the plant will significantly 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 complex will be completed within the next decade, EGA said in a press statement.
Ethylene dichloride and caustic soda manufacturing is a new industry for KIZAD and construction of the plant is expected to boost KIZAD’s role as an industrial centre for Abu Dhabi and the UAE.
The long term supply agreement was signed by Abdulla Kalban, managing director & chief executive officer of EGA, Shaheen’s chairman Rashed Al Suwaidi and Shaheen’s managing director Walid Azhari.
“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,” Kalban said.
“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.”
The new plant will be built near to EGA’s Al Taweelah site on a 300,000 square metre plot and has room for future expansion.
The production capacity of the first phase of the plant is expected to be 130,000 tonnes per year of caustic soda and 160,000 tonnes per year of ethylene dichloride.
Shaheen said there will be a second phase of the project, which will double caustic soda production capacity and begin production of vinyl chloride and polyvinyl chloride.
As the UAE currently imports all its polyvinyl chloride needs, local production could spur the development of manufacturers using polyvinyl chloride at KIZAD.
EGA is currently building Al Taweelah alumina refinery next to its Al Taweelah aluminium smelter. The refinery will process bauxite ore into alumina, which is the feedstock for aluminium smelters.
Al Taweelah alumina refinery is the first to be built in the UAE and will meet 40 per cent of EGA’s alumina requirements.