The largest industrial business in the UAE (outside of oil and gas), Emirates Global Aluminium, has signed a long-term supply agreement with Shaheen Chem Investments LLC, paving the way for Shaheen’s construction of a chemical complex in Khalifa Industrial Zone Abu Dhabi.steel for
Shaheen’s ethylene dichloride and caustic soda plant will supply all caustic soda output to EGA’s Al Taweelah alumina refinery for 15 years, meeting EGA’s need for the raw material. Production will begin early next decade.
The plant will significantly boost the United Arab Emirates’ production of caustic soda, which is used across various industries and products. It will be the first facility in the UAE to create ethylene dichloride, which will be sold to third parties.
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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. The 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.
Kalban said: “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. 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.”
Al Suwaidi added: “We now look forward to building our plant at KIZAD to supply EGA with the caustic soda it needs. 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.”