Highlight
1. Contract covers purchase of existing air separation units and construction of an additional unit
2. Total investment worth around EUR 120 million
3. Deal strengthens Linde's position in China

The technology group The Linde Group has been selected to manage the entire gas supply system for steel company Hebei Puyang Iron and Steel Ltd in Wu'an. Linde will be investing around EUR 120 million in the project. An agreement outlining the terms of the deal was recently signed by both parties.

Mr Sanjiv Lamba Member of the Executive Board of Linde AG responsible for Asia said "We are delighted to be embarking on a long-term business relationship with Hebei Puyang Iron and Steel. This move also strengthens our position as a leading gases and engineering company in the dynamic Chinese market."

Under the terms of this on site agreement, Linde acquires the steelworks' seven existing air separation units and pipeline network will operate these and modernize them to incorporate the latest technical developments. In addition, Linde Engineering Division will build a new ASU on site with a production capacity of 30,000 normal cubic metres of oxygen per hour. Scheduled to go on stream in 2014, the new ASU will partially replace older, less energy efficient plants, also meeting rising demand for gaseous oxygen at the steelworks. The new arrangement gives Puyang Iron and Steel a much greater degree of reliability in its gas supply. The new ASU will also produce surplus liquid gases for the regional market.

Hebei Puyang Iron and Steel is a privately owned company that produces around 6 million tonnes of steel every year in Wu'an. This is used to create plate, hot rolled coil, strip, tube and wire rod for industries such as construction, shipbuilding and manufacturing.