Major Contract With Shagang, Leading Steel Manufacturer In China
Air Liquide announces the signature of its largest long term contract in China with Shagang, which has
decided to outsource its increasing industrial gases needs. Under the terms of this agreement, Air Liquide
will invest about 90 million euros to install two large air separation units (ASU) of 2000 tonnes per day of
gaseous oxygen each, to supply oxygen, nitrogen and argon to Shagang steel mills in Zhanjiagang,
Jiangsu Province. The units, which will start in Q2 2009, will also supply other local industrial customers with
gaseous or liquid products. It will have in particular, capacity of 600 tonnes per day of liquid nitrogen and
oxygen to meet the demands of a fast growing market. The units, designed and manufactured by Air Liquide
Hangzhou, the Air Liquide engineering centre in China, will use the latest technologies providing both high
reliability and high-energy efficiency.
Jiangsu
Jiangsu Shagang Group is located in Zhanjiagang, about 100 km west of Shanghai. It ranks number one
among private steel companies in China, and number four in terms of steel production. It is one of the Top 25
most competitive steel mills worldwide. Its steel production reached 14.5 million tonnes in 2006 and will continue
to increase on its site in the Zhanjiagang Yangzte Metallurgical Industrial Park (YMIP). It is an integrated steel
plant. Its finished products include super wide and thick plates, hot roll coils and high quality bars and wires,
85% of which are for the domestic market.
Commenting on this new development, Jean-Pierre Duprieu, Senior Vice-President Asia-Pacific and member
of Air Liquide's Executive Committee, said: "This very large contract represents a milestone in the
development of Air Liquide in China not only by its size, but also by the choice of a leading company
such as Shagang to outsource its industrial gases needs. We are happy to have convinced Shagang to
make this decision in line with the trend in other countries. We want to thank them for their trust as well
as the Zhanjiagang authorities for their continuous support."
Mr. Shen WenRong, Chairman of Shagang, added: "After fruitful discussion we have decided to entrust
Air Liquide with our industrial gases needs. It is a major change for us, being used to producing
industrial gases ourselves. Air Liquide has understood our needs and shown competitiveness. We are
happy to enter into a long term partnership with Air Liquide and benefit from its worldwide capabilities."
Air Liquide has been steadily developing the Jiangsu market, which is the largest and fastest growing region in
China, with a GDP growth of 15% in 2006. Main industries are high tech, metal and chemical manufacturing, requiring in
particular large quantities of nitrogen for such needs as inerting or heat treatment. In 2006, Air Liquide commissioned
three plants in Jiangsu Province: one in Wuxi to service Hynix-ST, a leading semiconductor manufacturer, with high purity
gases, one in Changshu to supply metal fabricating customers with nitrogen and hydrogen, and one in the same industrial
park where Shagang is located, to supply Zhanjiagang Posco Stainless Steel with oxygen, nitrogen and argon. Total
investment of Air Liquide in Jiangsu Province is close to 200 million euros.
Established in China in 1916 and with an increased presence in the last 15 years, Air Liquide employs about 1,500 people
with annual sales of more than 200 million euros. The Group has operations in the areas of
Beijing/Tianjin/Shandong/Liaoning in the north, Shanghai/Jiangsu/Zhejiang in the east. Air Liquide plans to invest
approximately 500 million euros in China over the period 2004-2008, to meet strong market demand and to seize growth
opportunities. This new investment is the 5th announced in China during the last 12 months for industrial gas
production.
Present in 72 countries, Air Liquide is a world leader in industrial and medical gases and related services. The Group
offers innovative solutions based on constantly enhanced technologies. These solutions, which are consistent with Air
Liquide's commitment to sustainable development, help to protect life and enable our customers to manufacture many
indispensable everyday products. Founded in 1902, Air Liquide has near 37,000 employees. The Group has successfully
developed a long-term relationship with its shareholders built on trust and transparency and guided by the principles of
corporate governance. Since the publication of its first consolidated financial statements in 1971, Air Liquide has posted
strong and steady earnings growth. Sales in 2006 totaled 10,949 million euros, with sales outside France accounting for
almost 80%. Air Liquide is listed on the Paris stock exchange and is a component of the CAC 40 and Eurostoxx 50 indices
(ISIN code FR 0000120073).
Corporate Communication
Dominique Maire �� + 33 (0)1 40 62 53 56
Corinne Estrade-Bordry �� + 33 (0)1 40 62 51 31
www.airliquide.com
