Page 41 - Plastics News December 2021

BUSINESS NEwS

TA’ZIZ And Reliance Launch Strategic Joint Venture DS Smith H1 Reports

For $2 Billion Chemicals Projects In Ruwais 16% Increased Revenue

bu Dhabi Chemicals Derivatives Group CEO and Reliance Industries K-based sustainable packaging
ACompany RSC Ltd (“TA’ZIZ”) Chairman and Managing Director, Mr. Ucompany DS Smith has reported
and Reliance Industries Limited (RIL), Mukesh D. Ambani. The joint venture a 16% increase in revenue on a reported
have agreed to launch ‘TA’ZIZ EDC & terms were signed by Mr. Khaleefa Al basis to £3.36bn ($4.43bn) for the
PVC’, a world-scale chemical production Mheiri, Acting CEO of TA’ZIZ and first half (H1) of 2021-22.In the six
partnership at the TA’ZIZ Industrial Mr. Kamal Nanavaty, President Strategy months to 31 October, the company’s
Chemicals Zone in Ruwais. The new and Business Development of Reliance revenue for the period grew by 22%
joint-venture will construct and operate Industries Limited. H.E. Dr. Al Jaber, on a constant currency basis. DS Smith
a Chlor-Alkali, Ethylene Dichloride said: “This strategic partnership with said that this increase was driven by
(EDC) and Polyvinyl Chloride (PVC) Reliance Industries builds on the strong packaging volume growth and higher
production facility, with an investment and deep-rooted bilateral ties between selling prices.The company’s adjusted
of more than $2 billion. Representing the UAE and India and highlights operating profit grew by 20% to £276m,
the first production of these chemicals the attractive and compelling value while its pre-tax profit rose by 80% to
in the UAE, the project will enable proposition offered by TA’ZIZ as we £175m.Its basic adjusted earnings per
the substitution of imports and the grow a globally competitive industrial share (EPS) were £0.14 and its basic
creation of new local value chains, ecosystem. We are delighted to partner EPS from continuing operations were
while also meeting growing demand for with Reliance Industries in this new joint £0.10, up by 81% from six months
these chemicals globally. The TA’ZIZ venture which will manufacture critical earlier.DS Smith chief executive Miles
Industrial Chemicals Zone is a joint industrial raw materials for the first time Roberts said: “We are continuing to
venture between Abu Dhabi National in the UAE, supporting our national benefit from a very dynamic market,
Oil Company (ADNOC) and ADQ. The strategy to empower the industrial sector
project builds on ADNOC and Reliance’s to become the driving force of a truly
long-standing strategic partnership dynamic economy over the next 50
and is Reliance’s first investment in years.” Mr. Mukesh Ambani, said:, “This
the MENA region. The signing of joint venture between Reliance Industries
the joint venture terms, which are Limited and TA’ZIZ will further cement
subject to regulatory approvals, was the long standing and valued relationship
witnessed by His Excellency Dr. Sultan between India and the UAE. We are
Ahmed Al Jaber, UAE Minister of happy that we will be setting up the first
Industry and Advanced Technology projects in the vinyl chain in the UAE with demand for packaging for different
and ADNOC Managing Director and at TA’ZIZ Industrial Chemicals Zone." retail solutions evolving rapidly and
COP26 intensifying the desire for
sustainable packaging solutions for the
circular economy. “In a challenging
operating environment, I am pleased to
see good progress.“Our supply chains
have remained secure and the significant
increases in input costs have been
mitigated by effective hedging of energy
cost, our long-term supplier agreements
and raising packaging prices. “Combined
with strong volume growth, this has
significantly increased our profit, with
continuing good progress recovering
from the impacts of Covid-19.”

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