Linde Group Signs Gas Supply Agreement with Chinese Steel Company

The Linde Group has been chosen by the Chinese steel company, Hebei Puyang Iron and Steel to meet its entire gas supply needs. For the purpose of the project, Linder will invest €20 million.

As per the terms of the agreement, Linde will purchase all of the seven, Air Separation Units (ASU) and the pipeline network currently owned by Hebei Puyang and will take up the task of operating and modernising them by using the latest technology. Apart from the Engineering Division, Linde will also set up an ASU on site, which will have a production capacity of 30,000 m3 of oxygen per hour. The new ASU will help the steel company to meet the growing demand for gaseous oxygen and will replace old and lesser energy efficient plants to a certain extent. The ASU, which is expected to be set up by 2014, will also produce additional liquid gases for distribution in the local market.

Linde Group has around 140 plants that are operational in prominent industrial hubs located in China. Hebei Puyang produces around 6 Mt of steel annually in the province of Wuan. The steel produced from the company is used to create wire rods, plates and hot rolled coil strips for manufacturing, shipping and construction industries.