ABU DHABI, 30th June, 2026 (WAM) — 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 the construction, automotive, furniture, and consumer goods sectors. The study supports TA’ZIZ’s strategy to expand into higher-value speciality chemicals, strengthen domestic manufacturing capabilities, and advance the UAE’s industrial growth ambitions.
Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “MDI is a strategically important chemical that supports high-growth sectors including construction, automotive, and advanced materials, representing a clear opportunity to localise production within the UAE. This study reflects TA’ZIZ’s mandate to unlock high-value chemicals, capture more value from our resource base, and strengthen supply chain resilience. Covestro is a world leader in MDI technology and execution, and their global expertise and track record make them an ideal partner to assess this opportunity at scale.”
The collaboration brings together TA’ZIZ’s integrated industrial platform in Ruwais, Covestro’s global leadership in MDI technology and high-performance polymers, and XRG’s role in advancing ADNOC’s global chemicals growth strategy.
Dr. Markus Steilemann, CEO of Covestro, said, “Our collaboration with TA’ZIZ reflects a shared ambition to develop world-scale chemical capabilities in the UAE in response to growing global demand. By combining Covestro’s technology leadership and operational expertise with TA’ZIZ’s integrated industrial platform, we are well positioned to support the growth of our customers and strengthen regional supply chains.”
MDI is a key component of the recent strategic collaboration agreement between TA’ZIZ and Alpha Dhabi Holding, one of MENA’s largest and fastest-growing investment holding companies. The agreement, signed in May, will assess the potential development of new chemicals in the UAE and, subject to final investment decisions and regulatory approvals, could deliver approximately 2.2 million tonnes per annum of additional chemicals capacity and attract up to $10 billion in investment.
A core advantage of the proposed development is TA’ZIZ’s integrated industrial ecosystem in Ruwais, which provides direct access to key feedstocks, including chlorine, methanol, and ammonia from the existing chemicals complex, alongside commercial-grade utilities and fit-for-purpose logistics infrastructure. This integration supports cost competitiveness, supply reliability, and a lower-carbon production profile, while helping meet global customer demand for more sustainable materials.
Global demand for MDI is expected to grow steadily, driven by its use in insulation, construction materials, automotive components, and consumer applications. With regional supply remaining limited, local production would enhance import substitution, strengthen supply chain resilience, and support the development of downstream manufacturing value chains in the UAE and the wider region.
The study will evaluate the technical, commercial, and economic feasibility of the proposed plant, with the aim to inform a future investment decision.
XRG’s participation brings ADNOC’s global chemicals investment platform into the study, following its acquisition of Covestro in 2025 as part of ADNOC’s strategic expansion in the chemicals sector. Together, TA’ZIZ, XRG and Covestro support ADNOC’s ambition to become a top-three global chemicals player.
Source: Emirates News Agency