TA’ZIZ has launched a joint feasibility study with Covestro and XRG to assess the development of a world-scale methylene diphenyl diisocyanate (MDI) plant in Ruwais Industrial City, Abu Dhabi.
The proposed facility, with a potential production capacity of up to 660,000 tonnes per annum, would rank among the largest MDI plants globally.
The feasibility study will evaluate the technical, commercial, and economic aspects of the proposed project and will provide the basis for any future investment decision.
MDI is a key chemical used in the production of high-performance polyurethane foams and insulation materials.
It is widely used in the construction, automotive, furniture, and consumer goods industries to manufacture high-performance insulation materials, polyurethane foams, and a range of industrial and consumer products.
Mashal Saoud Al-Kindi CEO – TA’ZIZ
“MDI is a strategically important chemical that supports high-growth sectors including construction, automotive, and advanced materials, representing a clear opportunity to localize 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, making them an ideal partner to assess this opportunity at scale.”
The collaboration combines TA’ZIZ’s integrated industrial platform in Ruwais, Covestro’s expertise in MDI technology and high-performance polymers, and XRG’s role in advancing ADNOC’s global chemicals growth strategy.
Dr. Markus Steilemann, Chief Executive Officer of Covestro, emphasized that, “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.”
Part of broader chemicals development plans
The proposed MDI project is also included in the strategic collaboration agreement signed in May between TA’ZIZ and Alpha Dhabi Holding, one of the MENA region’s investment holding companies.
The proposed developments could add approximately 2.2 million tonnes per annum of chemical production capacity and attract up to $10 billion in investment.
Integrated industrial platform
The location within the integrated industrial ecosystem at Ruwais provides direct access to key feedstocks, including chlorine, methanol, and ammonia produced at the existing chemicals complex, in addition to commercial-grade utilities and dedicated logistics infrastructure.
This integration is expected to support cost competitiveness, supply reliability, and a lower-carbon production profile while serving demand for more sustainable materials.
Global demand for MDI is expected to continue growing, supported by its use in insulation materials, construction products, automotive components, and a range of consumer applications.
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 strategy to expand its international chemicals portfolio.
