Linde to supply air gases for Chinese chemicals producer Dahua
Technology company The Linde Group has been selected to supply air gases to chemicals producer Dahua Group on Songmu Island in Dalian, Northeast China, officials said on Wednesday.
Linde will be investing around €70 million in the project, it said, after an agreement outlining the terms of the deal was recently signed by both parties.
Dahua Group belongs to the country’s leading top 10 soda ash producers.
“We are delighted to further expand our long-term business relationship with our partner Dahua in Dalian,” said Sanjiv Lamba, member of the executive board of Linde AG responsible for Asia.
“This move strengthens our position as a leading gases and engineering company in the dynamic Chinese market,” Lamba added.
Under the terms of this on-site agreement, Linde acquires the customer’s two existing air separation units (ASUs) in Dalian, and will operate these.
In addition, Linde’s engineering division will build a new ASU on site with a production capacity of 38,000 normal cubic metres of oxygen per hour (Nm3/h).
Scheduled to go on stream in 2014, the new ASU will replace the two older plants, also meeting rising demand for gaseous oxygen at Dahua’s operations, officials said.
The new arrangement gives the customer a greater degree of reliability in its gas supply, the company said. The new ASU will also produce surplus liquid gases for the regional market.
As part of the contract agreement, the upgraded gas production facility will be jointly managed by a newly formed 50:50 joint venture gases company between Linde and Dahua.
Linde-Dahua (Dalian) Gases Company, Ltd. will as well offer industrial gaseous and liquid products and provide relevant engineering services to the neighboring industrial hubs, officials said.
Dahua Group is wholly owned by Dalian State Assets Administration Committee, with 33 subsidiaries in China. Set up in 1933, it is the earliest and today one the biggest basic chemical material and fertilizer producers in China.
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