Russia: New Major Investment
Metallurgy is one of the main industrial sectors of Russia making a strong
contribution to the country's economy. This sector is expected to continue growing
significantly and to pursue its modernization effort.
The Air Liquide Group, the world leader in gases for industry, health and the
environment announces the signature of a new long-term agreement with
Severstal, Russia's leading steel producer. Air Liquide will supply oxygen, nitrogen
and argon to Severstal's new steel plant in Balakovo, located in the region of
Saratov (Volga Federal District).
Air Liquide will invest, build and operate in Balakovo a new state-of-the-art
Air Separation Unit (ASU) with a capacity of more than 300 tonnes per day of
oxygen, which is scheduled to start up at year-end 2012. The Air Liquide plant will
also produce liquid oxygen, liquid nitrogen and liquid argon to serve the needs of
other industrial customers in the regions of Saratov and Samara.
The Air Liquide investment amounts to a total of Euros40 million for the production
facilities and supply chain altogether.
Pavel Ipatov, Governor of the Saratov region, stated: "We are delighted to
welcome Air Liquide to our region, a company with long-term strategic
development plans in Russia. I am convinced that the new plant in the Saratov
region will be a reliable partner for local industrial enterprises. Moreover,
I would like to highlight that this plant is being built in accordance with strict
safety, energy efficiency and environmental requirements."
Alexander Grubman, CEO of Severstal Russian Steel Division, comments: "The
construction of this Air Separation Unit is the second mutual project of
Severstal and Air Liquide. The signature of this new contract with Air Liquide
is an important step in the development of our partnership based on the
respect of both sides' interests".
Guy Salzgeber, member of the Air Liquide Group Executive Committee, Vice-
President North and Central Europe, declared: "We are pleased to see this new
expansion of our partnership with Severstal after the success of our jointventure
in Cherepovets. Furthermore, this new ASU will enable Air Liquide to
complete its geographical coverage of the Volga district for the supply of
liquid gases to industrial customers, after investments already announced in
Elabuga (Tatarstan) and Kstovo (Nizhny Novogorod). This new contract is symbolic of our continuous development in this high growth region.
Developing economies are one of the growth drivers of the Air Liquide
Group."
