September 10, 2009 Lehigh Valley, Pa.
Air Products (NYSE: APD) today announced it has signed a contract to purchase and operate four existing air separation units (ASUs) and build a new air separation unit to supply industrial gases to Xingtai Iron and Steel Corporation, Ltd., one of China’s largest specialty steel manufacturers located in Hebei province, China. Xingtai Steel is expanding its existing steelmaking capacity and will be supplied over 1,700 tons per day of oxygen from the combined ASUs under a long-term agreement. The purchase of the existing ASUs is pending Chinese government approval, which is expected in 2009. The new air separation unit is expected to be on-stream in March 2011.
The oxygen, nitrogen and argon produced by the plants will be used by Xingtai to help meet China’s growing demand for specialty steel products. “We are very pleased to be chosen by Xingtai Steel, one of China’s leading specialty steel producers, to build this ASU and supply their increasing need for industrial gases. This on-site plant fits well with Air Products’ strategic plan and allows our merchant industrial gas business to continue expanding in China,” said Phil Sproger, vice president–Business Development for Asia at Air Products.
The new ASU will be designed and built primarily by Air Products’ engineering center in Shanghai and its cryogenic manufacturing center in Caojing, near Shanghai.
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 had fiscal 2008 revenues of $10.4 billion, operations in over 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.