Aug 4 2004
BOC is set for a multi-million pound investment in South Wales following news of an increase in demand for industrial gases from one of the world's largest steel producers.
The 15-year deal with Corus will see BOC increase by 30 per cent its supply of oxygen, nitrogen and argon to the Corus Strip Products UK plant in Port Talbot. Corus will use the additional oxygen, nitrogen and argon to increase steel production in South Wales as part of its 'Restoring Success' programme.
The increase in steel production by Corus in Wales comes at a time when global demand for steel from the construction and automobile industries is growing. In addition to oxygen, nitrogen and argon, BOC also supplies hydrogen by pipeline from its Margam plant to Corus.
The investment in South Wales is the fifth major investment announcement by BOC supporting its customers in the global metals industry in the last 12 months. A deal to supply 400 tonnes-per-day of oxygen to Companhia Siderúrgica de Tubarão, the world’s biggest producer of slab steel in Brazil and the signing of a major contract for the supply of oxygen to the Taiyuan Iron and Steel Corporation in China, are just two of the contract success which have prompted BOC's global investment.
Nigel Hunton, BOC's managing director, Process Gas Solutions (PGS) Europe, said: "In addition to Port Talbot, BOC is a major supplier of gases to Corus at Scunthorpe, Rotherham and Redcar, and has invested heavily in this relationship since the late 1990s. This new additional expenditure covering the infrastructure needed to supply the additional quantities is a further demonstration of our commitment to Corus in Port Talbot.
"We worked closely with Corus locally to evaluate various supply options to come up with the lowest cost option to support Corus' requirements to increase productivity and increase output. At a time when global demand for steel is increasing, manufacturers need to know they can count on suppliers like BOC to meet their needs safely, reliably and cost effectively."
Phil Dryden, managing director, Corus Strip Products UK, said: "BOC's investment in infrastructure at Margam is good news for Wales and helps to ensure that Corus can secure maximum benefit from the increased iron and steelmaking capacity at Port Talbot as soon as our heavy-end investment project is completed in early 2005."
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