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News ReleaseAir Products to Build New ASU and Liquefier at Nanticoke in Canada

May 20, 2008 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced the signing of a new long-term supply contract between its subsidiary, Air Products Canada, Ltd., and U. S. Steel Canada, Inc., in Nanticoke, Ontario, Canada. In conjunction with this new agreement, Air Products will build a new air separation unit (ASU) with a high efficiency liquefier facility. The new facility, to be on-stream in the fourth quarter of 2009, marks an expansion of Air Products’ oxygen and nitrogen supply to the steel mill and increased merchant liquid argon capacity, as well as a more efficient production of merchant liquid oxygen and nitrogen for Air Products’ operation at its Nanticoke facility.

“We have been supplying the Lake Erie facility’s tonnage industrial gas requirements with our original Nanticoke air separation plant since 1980. This latest investment by Air Products keeps pace with Lake Erie's increased demand for industrial gases and represents another milestone in our long-term relationship. At the same time, the new liquefier will increase our supply capacity and improve our market position in the Eastern Canada and Northeastern U.S. markets for liquid products,” said Alex Masetti, vice president – Tonnage Gases North America for Air Products.

The new ASU will supply over 1,200 tons per day (TPD) of gaseous oxygen for U. S. Steel’s operations. The new high efficiency liquefier will produce over 500 TPD of liquid oxygen and liquid nitrogen, and increase pure liquid argon production capacity for North American customers in several market applications. The larger and more efficient facility will replace the original Air Products’ plant at the same location.

This investment is another indication that Air Products’ industrial activity in Canada has increased greatly over the past several years. A new hydrogen production plant to serve customers in the Alberta Heartlands industrial corridor and refinery industry near Edmonton, Alberta was placed on-stream in April 2008. Air Products also commercialized an earlier hydrogen production facility at the same location, as well as at a plant in Sarnia, Ontario to serve local refiners in 2006. The Sarnia facility is connected with an Air Products' hydrogen liquefaction plant located nearby, which has been safely and reliably liquefying and distributing hydrogen for over 25 years.

About Air Products

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. Air Products has annual revenues of $10 billion, operations in over 40 countries, and 22,000 employees around the globe. For more information, visit www.airproducts.com.  

About U. S. Steel Canada Lake Erie Works

LakeErie Works is an integrated market mill focused on the production and sale of high-quality hot rolled sheet. Principal markets for hot rolled sheet products in North America include the automotive sector, steel service centers, and pipe and tubular product manufacturers. U. S. Steel Canada Lake Erie Works, situated on 4,100 acres in Nanticoke, Ontario on the north shore of Lake Erie, is a fully-integrated steelmaking facility. It was acquired by U. S. Steel in 2007 and is the most recent greenfield integrated steel complex to be built in North America.


NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

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    Art George
    610-481-1340
    Air Products and Chemicals, Inc.
    7201 Hamilton Boulevard
    Allentown, PA 18195-1501
    USA
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    Air Products and Chemicals, Inc.
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