Praxair China has signed a long-term supply agreement with Nanjing-based Meishan Iron & Steel Company, a subsidiary of the Baosteel Group, to build two new air separation plants to come on line in the fourth quarter of 2009 and third quarter of 2010.
The new plants will supply oxygen, nitrogen and argon to meet growing demand as Meishan Steel increases its production capacity. The two air separation plants will have a total capacity about 60,000 cubic meters of oxygen/hour when they go on-stream. The two plants will be added to three other Praxair air separation units currently being operated by the Praxair Shanghai Meishan joint venture.
Financial details of the contract were not disclosed.
Meishan Steel is growing rapidly with its parent company towards Baosteel's goal of becoming one of the top steel makers worldwide. Praxair China has been supplying gases to Baosteel Co., Ltd. and Meishan Steel for over a decade.