Ta’ziz, Alpha Dhabi sign US$10B deal to produce 2.2MT of packaging chemicals annually

UAE – Ta’ziz and Alpha Dhabi have signed a US$10 billion deal to produce up to 14 new chemicals in Abu Dhabi, delivering 2.2 million tonnes per annum of additional capacity including styrene, polystyrenes, acrylic acid, and epoxy resins for packaging applications.

The chemicals are focused on domestic demand and could substitute key products currently imported into the UAE. 

The move remains subject to final investment decisions and regulatory approvals. 

The partnership was announced at the Make it in the Emirates event in Abu Dhabi.

Packaging Applications for the New Chemicals

Styrene and polystyrenes are used in rigid packaging applications including yoghurt pots, meat trays, and disposable cutlery. 

Acrylic acid and derivates are used in adhesives, sealants, and coatings for flexible packaging. 

Polyols are key components in polyurethane foams used for protective packaging. Epoxy resins are used in metal can coatings and industrial adhesives. 

By producing these chemicals locally, the UAE reduces its dependence on imports from Asia and the Middle East, shortening supply chains for domestic packaging converters and lowering exposure to shipping disruptions and currency volatility.

Integration with Ta’ziz’s Broader Ecosystem

The Ta’ziz industrial zone is set to produce 4.7 million tonnes of chemicals annually, including low-carbon ammonia, methanol, and PVC, once the first phase is completed at the end of 2028. 

This past week, Ta’ziz also signed global offtake and feedstock agreements worth US$28.5 billion to support chemicals production, including deals with Adnoc and Proman for methanol, Emirates Global Aluminium for caustic soda, and Mitsubishi Corporation for ethylene dichloride, vinyl chloride monomer, and caustic soda. 

The chemicals are used in everything from aluminium smelting and water treatment to PVC pipes and packaging.

Strategic Context for the UAE’s Industrial Push

Mashal Al-Kindi, chief executive of Ta’ziz, said the collaboration could create new economic opportunities in the UAE by expanding the company’s industrial growth mission and reducing import dependency. 

Hamad Al Ameri, managing director and group chief executive of Alpha Dhabi Holding, said the proposed chemicals derivatives would strengthen domestic manufacturing, unlock export opportunities, and create sustainable long-term value. 

The industrial sector’s contribution to the UAE’s gross domestic product reached Dh200 billion (approximately US$54.45 billion) last year.

When the Packaging Chemical Supply Chain Shortens

A styrene monomer shipped from Asia spends weeks at sea. 

One produced in Al Ruwais travels hours. Ta’ziz and Alpha Dhabi’s US$10 billion bet on local chemicals production is not about replacing one supplier with another, it is about collapsing the time between order and delivery.

For packaging converters, that speed is not a convenience; it is a competitive edge.

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