Air Products Signs Long-Term Contract to Supply the Steel Industry in Malaysia
LEHIGH VALLEY, Pa. (September 22, 2008) - Air Products has signed a long-term contract with Ann Joo Steel Berhad, a subsidiary of Ann Joo Resources Berhad (KLSE: annjoo 6556) which is listed on the main board of Bursa Malaysia Securities Berhad, to supply onsite gaseous oxygen, nitrogen and argon to Ann Joo Steel's mill at Prai, northwest Malaysia.
Air Products will build, own and operate an on-site air separation unit (ASU) to supply Ann Joo Steel. Scheduled to come on-stream in mid-2009, the ASU will have a total production capacity of more than 800 tons per day (TPD) including liquefied industrial gases for supply to the fast growing market in Malaysia.
"We have been supplying Ann Joo Steel for more than 10 years and are honored to support their expansion project. This long-term contract demonstrates how our leading technologies and cost-effective supply are able to help our customers meet their increasing requirements," said Howard Castle-Smith, vice president of Tonnage Gases for Air Products Asia. "The steel market in Malaysia is expected to grow in alignment with the country's economic expansion plan. Our new investment and contract will put us in a good position to continue our support to the steel market."
The oxygen, nitrogen and argon from Air Products' ASU will be used in Ann Joo Steel's capacity-expanded electric arc furnace (EAF) operations and to meet its new blast furnace requirements. The added steel-making capacity will help meet the growing domestic and regional steel market demand.
"We are pleased with Air Products' safety and technical standards. Their expertise and experience in large air separation unit projects proved their capabilities to meet our requirements," said Lim Hong Hock, executive director of Ann Joo Steel Berhad.
Ann Joo Steel Berhad, formerly known as Malayawata Steel Berhad, was the first integrated steel mill in South East Asia. It has a total annual steelmaking capacity of 750,000 metric tons and total annual rolling capacity of 600,000 metric tons. The company's core business is the manufacturing of long steel products, namely billets, deformed bars and wire rods. Ann Joo Steel is expanding its steel production output to meet the market demand.
"The new ASU will strengthen Air Products' position in Malaysia. The supply of liquid bulk gases from the plant will continue to support the overall growth requirements of the merchant market, said Jeffrey Chen, country general manager of Air Products Malaysia and Singapore.
Air Products 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 www.airproducts.com.
Media Inquiries:
(Air Products-U.S.)
Art George, tel: (610) 481-1340; e-mail: georgeaf@airproducts.com
(Air Products-Asia)
Jessica Cheng, tel: 852(2)8630585; e-mail: chengjs@airproducts.com
Investor Inquiries:
Nelson Squires tel: (1 610) 481-7461; e-mail: squirenj@airproducts.com
