Abu Dhabi Basic Industries Corporation (ADBIC), a wholly-owned subsidiary of Abu Dhabi government's General Holding Company, on Tuesday unveiled a $4 billion (Dh15 billion) Abu Dhabi Polymer Park (ADPP), an industrial cluster dedicated to plastic conversion.
The park is located at the Industrial City of Abu Dhabi (ICAD) and will host about 50 to 60 plastic product manufacturers, to provide for downstream production and integrate with the mid- and up-stream players in the UAE and the region.
The project was inaugurated by General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
"The project reflects the emirate's commitment towards diversifying sources of income through adopting a futuristic strategy based on encouraging investment and focusing on the industrial sector as the main driver for economic development," Shaikh Mohammad said.
"The government of Abu Dhabi is seeking to support and develop the heavy industries such as aluminium, steel, and petrochemicals through providing the basic needs capitalizing on the abundance of energy sources, the advanced infrastructure, and the strategic location," he added.
"Our industrial strategy entails support for projects that utilise the competitive advantages of Abu Dhabi such as energy, capital and the integration with the existing up and mid-stream industries," said Shaikh Hamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince's Court and Chairman of the Higher Corporation for Specialized Economic Zones (ZonesCorp).
"ZonesCorp has already preceded with the infrastructure works of the project to be accomplished by the second quarter of 2009," Shaikh Hamed added.
The total infrastructure is initially estimated at Dh1 billion, subject to alterations given the fluctuating nature of building material prices.
Investments
"We expect to attract Dh15 billion worth of investments from the UAE and the region to establish projects within the 4.5 square kilometers park, and so far local and international companies have already reserved 30 per cent of the area before the launch," Hussain Jasem Al Nowais, ADBIC chairman, said.
Throughout 2009, initial tenants are expected to start their operations, and by 2012 the park will reach its full capacity. The park will consume an annual average of one million tons of polymer to be supplied by Abu Dhabi National Oil Company's Borouj.
"In terms of supply, the region will be the only net polymer exporter worldwide by 2011 when the production is expected to double to 33 million tonnes through new projects in Saudi Arabia and Kuwait as well as the UAE," Abdullah Al Darmaki, ADBIC vice-president for petrochemicals, said.
Facilities include warehousing, laboratories as well as training and vocational institutes.