Abu dhabi: TA'ZIZ today announced the launch of a joint feasibility study with Covestro and XRG to assess the development of a world-scale methylene diphenyl diisocyanate (MDI) plant at the TA'ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Abu Dhabi. With a potential production capacity of up to 660 tonnes per year, the proposed facility would rank among the largest MDI plants globally. MDI is a key building block used in high-performance foams and insulation materials across various sectors. The study supports TA'ZIZ's strategy to expand into higher-value specialty chemicals and advance the UAE's industrial growth ambitions.
According to Emirates News Agency, Mashal Saoud Al-Kindi, CEO of TA'ZIZ, emphasized the strategic importance of MDI in supporting high-growth sectors and the opportunity to localize production within the UAE. He highlighted the collaboration with Covestro, a world leader in MDI technology, as an ideal partnership to unlock high-value chemicals and strengthen supply chain resilience.
The collaboration involves TA'ZIZ's integrated industrial platform, Covestro's global leadership in MDI technology, and XRG's role in advancing ADNOC's global chemicals growth strategy. Dr. Markus Steilemann, CEO of Covestro, expressed the shared ambition to develop world-scale chemical capabilities in the UAE by combining Covestro's technology leadership with TA'ZIZ's industrial platform.
The strategic collaboration agreement between TA'ZIZ and Alpha Dhabi Holding, signed in May, aims to assess the potential development of new chemicals in the UAE. The agreement could significantly increase chemical capacity and attract substantial investment, subject to final investment decisions and regulatory approvals.
The proposed development benefits from TA'ZIZ's integrated industrial ecosystem in Ruwais, providing direct access to key feedstocks and supporting cost competitiveness, supply reliability, and a lower-carbon production profile. This integration aims to meet global demand for more sustainable materials and enhance local production capabilities.
The study will evaluate the technical, commercial, and economic feasibility of the proposed plant to inform future investment decisions. XRG's participation brings ADNOC's global chemicals investment platform into the study, supporting ADNOC's ambition to become a top-three global chemicals player.