Linde seals two China gas supply contracts

22 October 2008 09:20  [Source: ICIS news]

LONDON (ICIS news)--Linde has entered into two new contracts for the on-site supply of gases to Ningbo Iron & Steel and Hanwha Chemical Corp in Ningbo in eastern China, the German industrial gases group said on Wednesday.

Under the agreement, Linde will build an additional air separation plant at the emerging industrial site on the Yangtze delta, an investment of around €17m ($22m), the company said in a statement.

The new plant will supply an extra 21,000 cubic metres/hour of oxygen to the steelworks of Ningbo Steel in Ningbo Beilun district from the middle of 2009.

Linde Gas Ningbo, a fully-owned subsidiary of the Linde group, has been supplying the company since 2007 with a total of 42,000 cm/h of oxygen and 40,000 cm/h of nitrogen from two air separation plants.

"The construction of this third air separation plant will ensure that we are able to meet the rising demand from Ningbo Steel for air gases as a result of its expansion in steel production," said Aldo Belloni, member of the executive board of Linde.

Korean petrochemical firm Hanwha is building a production facility for polyvinyl chloride (PVC) in the industrial development zone of Daxie, an island off the coast of Ningbo, due to come on stream at the end of 2010.

In the initial phase, Linde said it would supply HCC with up to 8,250 cm/h of oxygen and 2,000 cm/h of nitrogen.

The gases will be supplied from two air separation plants, each with a total capacity of  39,000 cm/h per pipeline, which Linde is currently building for its customer Ningbo Wanhua Polyurethane at its Daxie site, said the company.

It added that under this supply agreement, which was signed in December 2007, Linde Gas Ningbo would supply Ningbo Wanhua's polyurethane plants from 2010 with large volumes of oxygen and nitrogen.

At more than €100m, this was Linde's biggest single investment to date in China, said Linde.

“These new projects will establish extensive connections between various industrial companies in Daxie by 2010,” the company added.

At the site, Hanwha purchases the raw material for its PVC production from Wanhua, which in turn produces methyl di-p-phenylene isocyanate (MDI).

($1 = €0.76)

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By: Hilde Ovrebekk
+44 20 8652 3214

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