Air Liquide Signs a New Long Term Contract with Leading Steel Producer NLMK in Russia
July 16 2020 - 3:15AM
Dow Jones News
Regulatory News:
Air Liquide (Paris:AI) and NLMK, a leading steel producer in
Russia, have entered into a new long-term partnership. Under the
agreement, Air Liquide will invest around 100 million euros in the
flagship site of NLMK in Lipetsk, a combination of three projects
which include the construction of a state-of-the-art Air Separation
Unit (ASU), the acquisition of existing hydrogen unit for the steel
plant and of the unit for Rare Gases production. This project also
provides the base for growth of Air Liquide's Industrial Merchant
activity in one of the largest industrial Merchant markets in the
Moscow region. Leveraging on new ways of working, the teams were
able to finalize this new partnership digitally during the
lock-down due to the Covid-19 pandemic crisis.
Air Liquide will design, build, own, and operate a new Air
Separation Unit providing the highest industry standards in safety,
efficiency and reliability. The unit with a production capacity of
1,000 tons of oxygen per day will be built on the Lipetsk site to
increase steel production of the flagship site of NLMK. The Lipetsk
site is among the top five most competitive sites in the world for
slabs and hot-rolled coil production. Based on the latest energy
efficiency technologies, the new Air Liquide unit will be
contributing to the increased cost competitiveness of the site. The
start-up of the unit is expected in 2023. Under the partnership,
Air Liquide will also take over in the coming months all the assets
for the production of hydrogen and rare gases at the NLMK site.
This contract, finalized digitally in the midst of Covid crisis,
highlights the ability of the two companies to move forward despite
the environment. This long-term partnership with NLMK strengthens
Air Liquide's position in Russia and illustrates the company's
strategy development in major industrial sites. In addition, this
project provides momentum for growth in one of the largest
Industrial Merchant markets in the Moscow region representing 30%
of the country and reliable sourcing of Rare Gases for Air Liquide
customers worldwide.
François Jackow, Executive Vice President and a member of the
Air Liquide Group's Executive Committee, said: "We are delighted to
become a long-term partner of leading company NLMK. This contract
demonstrates growth of our Large Industries business in top
industrial sites as well as the strength of our integrated model
that enables expansion of the Industrial Merchant activity in this
high-density regional market. Air Liquide will also contribute
through its technological know-how and innovative solutions towards
improved energy efficiency of NLMK's flagship site. This is a
concrete illustration of how Air Liquide can contribute to a modern
responsible industry".
Air Liquide in Russia
Air Liquide was established in Russia in 1989 and was primarily
involved in the sale of industrial gas production equipment. In
2005, OOO Air Liquide, the Russian subsidiary for production and
sale of industrial gases was founded. Today, the company operates
17 industrial sites in key regions. More than 600 employees supply
products and services to over 1,500 customers.
A world leader in gases, technologies, and services for Industry
and Health, Air Liquide is present in 80 countries with
approximately 67,000 employees and serves more than 3.7 million
customers and patients. Oxygen, nitrogen and hydrogen are essential
small molecules for life, matter and energy. They embody Air
Liquide's scientific territory and have been at the core of the
company's activities since its creation in 1902.
Air Liquide's ambition is to be a leader in its industry,
deliver long term performance and contribute to sustainability. The
company's customer-centric transformation strategy aims at
profitable, regular, and responsible growth over the long term. It
relies on operational excellence, selective investments, open
innovation and a network organization implemented by the Group
worldwide. Through the commitment and inventiveness of its people,
Air Liquide leverages energy and environment transition, changes in
healthcare and digitization, and delivers greater value to all its
stakeholders.
Air Liquide's revenue amounted to 22 billion euros in 2019 and
its solutions that protect life and the environment represented
more than 40% of sales. Air Liquide is listed on the Euronext Paris
stock exchange (compartment A) and belongs to the CAC 40, EURO
STOXX 50, and FTSE4Good indexes.
www.airliquide.com
Follow us on Twitter @airliquidegroup
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CONTACT: Corporate Communications
media@airliquide.com
Investor Relations
IRTeam@airliquide.com
Air Liquide Russia Communications
Ksenia Amaryan
+7 (495) 641 2898
SOURCE: Air Liquide
Copyright Business Wire 2020
(END) Dow Jones Newswires
July 16, 2020 03:00 ET (07:00 GMT)
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