"Enhance" It is considering developing a world-class facility to produce the material "MDI" In Ruwais

ABU DHABI, June 30, 2017 (WAM) “Taziz” today announced the launch of a joint feasibility study with “Covestro –

The potential production capacity of the proposed facility reaches 660 thousand tons annually, making it one of the largest production facilities for MDI in the world, which is an essential component in the manufacture of high-performance foams and insulation materials, and is used in many applications including the construction sector and the vehicle industry, in addition to furniture and consumer products. This study supports Taziz’s strategy to expand in the high-value specialty chemicals sector, to contribute to supporting local manufacturing capabilities and achieving industrial growth goals in the UAE.

For his part, Mishal Saud Al Kindi, CEO of Taziz, said: MDI is a strategic chemical that supports a group of high-growth sectors, including construction, vehicles, and advanced materials, which provides an important opportunity to localize its production within the UAE to benefit from it in these sectors. The study confirms Taziz’s focus on developing high-value chemicals, maximizing the use of available resources, and supporting the flexibility of supply chains.

“With its global experience, pioneering role in MDI technologies, and proven operational track record in this field, Covestro is an important partner that allows us to evaluate and capitalize on this opportunity at scale.”

This cooperation brings together Taziz’s integrated industrial platform in Ruwais, Covestro’s global leadership in MDI technologies and high-performance polymers, and XRG’s role in supporting ADNOC’s global growth and expansion strategy in the chemicals sector.

For his part, Dr. Markus Staelmann, CEO of Covestro, said: Our cooperation with “Tazeez” confirms our joint endeavor to develop world-class chemical capabilities in the UAE in response to growing global demand, while combining the technical leadership and operational expertise of “Covestro” and the integrated industrial platform of “Tazeez” allows us to contribute effectively to supporting the growth of our customers and strengthening regional supply chains.”

MDI is a pivotal part of the strategic agreement signed last May between Taziz and Alpha Dhabi Holding, one of the largest and fastest-growing investment companies in the Middle East and North Africa, which aims to study the development of new chemicals in the UAE. After obtaining regulatory approvals and issuing final investment decisions, it is planned that this agreement will contribute to adding about 2.2 million tons annually of new chemical production capacity, and attract investments amounting to $10 billion.

The “Taziz” zone for chemical industries in Ruwais represents one of the most prominent features of the proposed project, as it provides direct access to key raw materials, including chlorine, methanol and ammonia, in addition to integrated industrial service facilities and advanced logistical infrastructure. This integration contributes to enhancing competitive efficiency, ensuring reliability of supplies, reducing carbon emissions in production processes, as well as supporting meeting the growing global demand for sustainable materials.

It is expected that global demand for MDI will witness continued growth, driven by its uses in insulation applications, building materials, components of the mobility sector, and consumer applications. With limited regional supplies, local production contributes to enhancing import substitution, strengthening the flexibility of supply chains, and supporting the development of subsequent industrial value chains within the UAE and the region.

The study will include an assessment of the technical, commercial and economic feasibility of the proposed facility, with the aim of supporting a future investment decision.

It is worth noting that XRG’s participation in the study supports benefiting from ADNOC’s global investment platform in the chemicals sector, following XRG’s acquisition of Covestro in 2025 as part of ADNOC’s strategy to expand in the sector. Within this framework, “Taziz”, “XRG” and “Covestro” support ADNOC’s goal to become among the three largest companies in the chemicals sector globally.

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