Air Products Signs Long-Term Contract to Supply Coal Chemical Industry in Shaan'xi Province, Western China
July 31 2008 - 2:45PM
PR Newswire (US)
LEHIGH VALLEY, Pa., July 31 /PRNewswire-FirstCall/ -- Air Products
(NYSE:APD) has signed a long-term contract with Weihe Clean Energy
Company Limited, a subsidiary of Shaan'xi Weihe Coal Chemical Group
Ltd, one of China's largest coal-based fertilizer and methanol
producers, to supply onsite gaseous oxygen and nitrogen for its
phase three coal-to-chemicals project in Weinan Hi-Tech Zone (WHTZ)
in Weinan city, Shaan'xi Province, Western China. Air Products will
build, own and operate a new air separation unit (ASU) on Weihe's
site near Xi'an, the capital city of Shaan'xi Province. Scheduled
to come on-stream towards the end of 2010, the ASU plant will
produce more than 2,000 tons of oxygen per day. In addition, Air
Products will supply liquid bulk gases to the fast growing merchant
market around Xi'an. Weihe Clean Energy Company Limited is a
subsidiary established by Shaan'xi Weihe Coal Chemical Group Ltd.
It currently produces methanol and dimethyl ether (DME) and will
produce methanol, acetic acid and acetic anhydride in its phase
three expansion project. Weihe will use the high-pressure oxygen in
the coal gasification process to produce syngas (synthesis gas),
which can be further separated into carbon monoxide (CO) and
hydrogen. Syngas, CO and hydrogen are important precursors to
produce other basic chemicals such as ammonia, methanol and acetic
acid, which are essential in the production of a variety of
products including paints, adhesives, plastics, construction
materials and hundreds of other products for the growing consumer
markets in China. "The success of our large scale projects in China
demonstrates our capabilities to help customers win with
technology, efficiency and low cost. By leveraging our global
expertise and local resources, we are in a very good position to
execute these projects and meet our customers' increasing
requirements," said Howard Castle-Smith, vice president of Tonnage
Gases Asia, Air Products. "With this contract and investment, we
are gaining significant momentum in our Tonnage Gases business to
serve petrochemical and refinery customers in China." The new ASU
will be designed and built primarily by Air Products' engineering
and manufacturing centers in China. In addition to supplying Weihe,
Air Products will expand its liquid product capacity to provide a
full range of atmospheric gases including oxygen. nitrogen and
argon for the fast growing area around Xi'an to meet the growing
demand of the electronics and general industries. "We are honored
to play a role in supporting the development of the petrochemical
industry in China," said Wilbur Mok, president of Air Products
Asia. "Our facility will be one of the first in that region to
produce liquid products. It puts us in a very competitive position
to meet the growing product demand that is driven by strong
economic and industrial development in the region, in a very
cost-effective and efficient way." Air Products (NYSE:APD) serves
customers in industrial, energy, technology and healthcare markets
worldwide with a unique portfolio of atmospheric gases, process and
specialty gases, performance materials, and equipment and services.
Founded in 1940, Air Products has built leading positions in key
growth markets such as semiconductor materials, refinery hydrogen,
home healthcare services, natural gas liquefaction, and advanced
coatings and adhesives. The company is recognized for its
innovative culture, operational excellence and commitment to safety
and the environment. Air Products has annual revenues of $10
billion, operations in over 40 countries, and 22,000 employees
around the globe. For more information, visit
http://www.airproducts.com/ or http://www.airproducts.com.cn/
***NOTE: This release may contain forward-looking statements.
Actual results could vary materially, due to changes in current
expectations. DATASOURCE: Air Products CONTACT: Media Inquiries:
Asia, Jessica Cheng, +1-852-286-0585, , or U.S., Art George,
+1-610-418-1340, , or Investor Inquiries: Nelson Squires,
+1-610-481-7461, Web site: http://www.airproducts.com/
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