Praxair Gulf Industrial Gases LLC has finalized an agreement with United Steel Company BSC, a closely held company in the Kingdom of Bahrain to supply oxygen, nitrogen and argon for use in its direct iron reduction plant and steel melt shop. The plant will be located in the Al Hidd industrial area in Bahrain and is due to start up during the Q4 of 2012.

As part of the agreement, Praxair will build a new air separation plant with an oxygen capacity of more than 350 tonnes per day. The plant will also produce liquid products for sale to the regional merchant market. The air separation plant will be owned and operated by a company majority owned by Praxair and in which its JV partner in the Middle East, the ROC Group has an investment.

Mr Khalid A Al Qadeeri CMD of SULB said that "This business agreement with Praxair is consistent with SULB's strategy to outsource non core operations to experienced global partners who can bring value to our steel project through their operational expertise. SULB selected Praxair after a global competitive bidding process and we are confident that Praxair, with its long experience in supporting the steel industry will provide us with safe, reliable and efficient operations."

Mr Todd Skare president of Praxair Europe and Middle East said that “We are delighted to be partnering with SULB on its new steel project at Al Hidd in Bahrain. The agreement confirms Praxair's commitment to establishing a fully integrated industrial gas business in Bahrain and neighboring countries in collaboration with our JV partner, the ROC Group of Kuwait. The signing of this contract is a result of Praxair's competitive supply system, integration with our established JV partner and a flexible design that best meets the customer's gas supply needs now and in the future."