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News ReleaseAir Products’ China Project Award is Largest Single On-Site ASU Order Ever

Company Will Operate World’s Two Biggest ASU On-Site Facilities in Same Province

December 14, 2011 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced it has signed a long-term contract with Shaanxi Future Energy Chemical Co., Ltd. and will build, own and operate the largest on-site air separation unit (ASU) order ever awarded to an industrial gas company. The facility, to be located in Yulin, Shaanxi Province, China, will include multiple ASU trains and produce 12,000 tons per day (TPD) of oxygen and significant tonnage volumes of nitrogen and compressed dry air for Shaanxi’s coal chemical plant. The Air Products ASU trains are scheduled to be operational in 2014.

“We are honored to have reached this milestone and to supply this very large industrial gas demand for Shaanxi Future Energy Chemical Company. We believe our worldwide track record of industrial gas facility safety and production reliability was important to gaining this long-term contract. Winning this new order allows Air Products to supply two important customers, both located in Shaanxi Province, from the two largest ASU train orders ever awarded to an industrial gas company,” said Steve Jones, Air Products’ China president. Jones, a member of the company’s corporate executive committee, is based in Shanghai as part of Air Products’ corporate strategy to support significant growth opportunities and accelerate the company’s development in emerging markets.

In 2010, Air Products had announced, what at that time, was the largest single ASU on-site order ever committed to an industrial gas company. Scheduled to be operational in mid-2013 in Weinan, Shaanxi Province, China, that facility includes three ASU trains producing over 8,200 TPD of oxygen, over 3,100 TPD of nitrogen, and over 375 TPD of compressed dry air, along with producing liquid products for the merchant market.

The industrial gases produced by Air Products’ ASUs and supplied to Shaanxi Future Energy Chemical Company at Yulin will be used to help produce one million tons per year of oil products. The ASU trains are to include design enhancements to minimize operating costs through energy efficiency. Technology advancements and other productivity improvements support Air Products’ overall sustainability goals of reducing energy consumption and emissions. “We have worked hard to develop the lowest cost and newest advanced technology ASU facilities to serve our customers with energy efficiencies that benefit their operations and the environment,” said Jones.

“We are pleased to sign the ASU gases supply contract with Air Products today. We believe that through close cooperation with Air Products, we can build and operate a world-class coal chemical plant,” said Qiwen Sun, general manger of Shaanxi Future Energy Chemicals Co., Ltd.

Shaanxi Future Energy Company was established in 2011. It is jointly-owned by YanKuang Coal Group (50%), Yanzhou Coal Co., Ltd. (25%) and Shaanxi Yanchang Petroleum Group (25%). 

Today’s China contract award news follows Air Products’ Sept. 26 announcement of a project in Nanjing, China where the company will build, own and operate another ASU in the Nanjing Chemicals Industrial Park to supply industrial gases under long-term contract. Air Products will also operate an integrated liquefier to significantly increase the supply of liquid products for the growing merchant liquid industrial gas market in the region. The Nanjing operations are scheduled to be operational in 2013. It will be the third Air Products’ ASU operating at this location.

Air Products has been operating in China since 1987 and was one of the first multinational industrial gas corporations to invest in the country. With over 40 operating entities, 50 production facilities and 2,200 employees, the company has already established a strong market position in China, serving a broad range of industries.

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. In fiscal 2011, Air Products had revenues of $10.1 billion, operations in over 40 countries, and 18,900 employees around the globe. For more information, visit www.airproducts.com.  

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company’s Form 10K for its fiscal year ended September 30, 2011. 

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