Praxair (China) Investment Co., Ltd. and Meishan Iron & Steel Co., Ltd., a subsidiary of Baosteel Group, have signed a long-term gas supply agreement on April 2nd. Under the deal, Praxair (China) will construct two new air separation units, with the first set to begin operations in the fourth quarter of 2009 and the second in the third quarter of 2010. These facilities will significantly enhance the supply of oxygen, nitrogen, and argon to support Meishan's ongoing steel production expansion.
As part of Baosteel's broader strategy to become a globally competitive steelmaker, Meishan is accelerating its growth plans. The new air separation units will play a key role in meeting the increased demand for industrial gases, with a combined capacity of approximately 60,000 cubic meters of oxygen per hour. Prior to this project, Praxair and Meishan had already operated three existing air separation plants under their joint venture.
Praxair (China) is a leading industrial gas supplier based in Shanghai, operating 15 wholly-owned subsidiaries and 10 joint ventures across the country. With over a decade of experience supplying gases to Baosteel and Meishan, the company has built a strong and reliable partnership with one of China’s largest steel producers. This latest agreement further solidifies Praxair’s position as a key player in the Chinese industrial gas market and supports the continued development of Baosteel’s global ambitions.
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