August 22, 2007 Lehigh Valley, Pa.
Air Products (NYSE: APD) announced today that it has been awarded a new contract by Tangshan Guofeng Steel Co Ltd (formerly known as Xinfeng Steel Group) for the supply of industrial gases. This is the third Air Products long-term contract signed with Guofeng Steel since 2003 to supply gaseous oxygen, nitrogen and liquid argon to its steel mills in Hebei Province, Northern China.
A new air separation unit (ASU), adjacent to Guofeng Steel, is to be built and is scheduled to come on-stream in late 2008. This will be the third Air Products-built ASU in Tangshan for Guofeng Steel. The first ASU was brought on-stream in mid-2005 and the second is expected to be operational by end of 2007. The on-site gaseous oxygen, nitrogen and argon are used in Guofeng Steel’s blast furnace and basic oxygen furnace for iron-steel making.
“Air Products’safety and technical standards, as well as its commitment to customers deeply impress us. We are delighted to sign the new contract with Air Products to support our business expansion,” said Mr. Zhang Zhen, general manager of Guofeng Steel.
“Guofeng Steel has been an Air Products’ strategic customer since 1999. We are honored to have been selected as its partner once again to support its next phase of expansion. It underscores the satisfaction of a long-standing customer in Air Products,” said Wilbur Mok, president of Air Products Asia.
Tangshan, a major industrial city in Hebei Province, is one of the leading steel production centers in Northern China, and Guofeng Steel has nine production facilities that manufacture 7 million tons of iron and steel annually. Steel production in China is growing at about 16-18 percent per annum with annual production exceeding 420 million metric tons.
“The building of this new on-site plant in Tangshan not only reinforces our leading supply position to steel manufacturers in Northern China, but also enables us to make another major stride forward in China’s Tonnage Gases market to support the other fast growing industries which require cost-effective and efficient large volume gas supply,” said Howard Castle-Smith, vice president of Tonnage Gases Asia, Air Products.
The new ASU will be designed and built primarily by Air Products engineering and manufacturing centers in China.
Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of US$9 billion, operations in over 40 countries, and over 20,000 employees around the globe. For more information, visit www.airproducts.com or www.airproducts.com.cn.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.