Nov 11 2004
Air Products and Air Liquide have signed a long-term contract with Beijing BOE Optoelectronics Technology Co. Ltd. to supply bulk gases to its newest manufacturing facility in the Beijing Economic Technological Development Area (BDA). BOE is a leading TFT-LCD (Thin Film Transistor-Liquid Crystal Display) manufacturer both within and outside China.
Air Products and Air Liquide will form a 50/50 joint venture to build and operate a new air separation unit (ASU) in BDA. Slated to come on-stream in the second half of 2005, this facility will have the capacity to produce 12,000 cubic meters per hour of ultra pure nitrogen for pipeline supply to BOE OT and approximately 430 tons per day of liquid oxygen, nitrogen and argon for the merchant market. Furthermore, the joint venture will have the capacity and the right to supply bulk gases via pipeline to other customers in BDA.
The joint venture will invest about US$30 million to build the air separation unit.
"The long-term agreement with BOE OT in Beijing has further strengthened our position as a leading supplier to the flat panel market," said Corning Painter, Air Products' vice president, Asia Electronics. "We are continuing to steadily invest in our Asian infrastructure to meet growing customer demand throughout the region. We're excited about the opportunities in China and look forward to our investment in the Beijing Economic Technological Development Area."
The TFT-LCD market has continued to grow year-over-year at more than a 30 percent rate, outpacing the growth being experienced by the silicon semiconductor industry. TFT-LCDs are commonly used for flat panel screens in televisions, computer monitors, cell phones, personal organizers and other electronic devices. Air Products is a leading supplier to the TFT-LCD and semiconductor markets in Asia, as well as a market leader in supplying specialty and bulk gases to flat panel markets in Korea and Taiwan. Approximately 45 percent of Air Products' Electronics sales are generated in Asia.
Air Products is one of the first foreign industrial gas companies to enter China with a joint venture in 1987 and has established a solid infrastructure in Northern, Southern and Eastern China. The company recently announced an expansion to its existing ASU facility in Guangzhou, making it the largest single production facility of liquefied products in China and one of the largest that Air Products operates worldwide.
For more information on LCD displays, click here.