UAE’s Shaheen Chem to build $1bn chemical complex in Abu Dhabi

Abu Dhabi’s Khalifa Industrial Zone (KIZAD) has signed an agreement with UAE-based Shaheen Chem Investment to lease land for a new Dhs4bn ($1.08bn) chemical complex project.

The two-phase development will span 330,000 square metres of land in Kizad and a dedicated port terminal at Khalifa Port.

The first phase is expected to produce 130,000 tonnes of caustic soda per year for Emirates Global Aluminium’s Al Taweelah alumina refinery and 160,000 tonnes per year of ethylene dichloride.

The second phase will double caustic soda production and expand operations to vinyl chloride and polyvinyl chloride production.

being built in Al Taweelah, Abu Dhabi. Once fully operational, the refinery, the first in the UAE, will produce 2 million tonnes of alumina per year, meeting 40 per cent of EGA’s needs.

“We now look forward to building our plant at KIZAD to supply EGA with the caustic soda it needs,” said Shaheen Chem chairman Rashed Al Suwaidi

“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 as part of phase II of the project.”

EGA signed a 15-year long-term supply deal with Shaheen in December.

It indicated at the time that production would come online “early next decade”.

The $3bn Al Taweelah alumina refinery will produce 2 million tonnes of alumina a year.