Air Liquide and Jiangsu Shagang Group, the largest private steel enterprise in China, signed a long-term agreement for the supply of industrial gases in Jiangsu Province, China. Air Liquide will invest approximately $118 million to build an air-separation unit (ASU) on the site, where it already operates two other ASUs. Under a 20-year contract, Air Liquide will build, own and operate the ASU, which has a daily capacity of 3,800 metric tons of oxygen. The company says it will be the largest single ASU for the steel industry in the world. When it starts up at the end of 2023, it will bring the total installed oxygen capacity to over 8,000 metric tons per day on the site.

Designed to use low-carbon energy, the plant will allow the steelmaker to significantly reduce CO2 emissions over time. The new ASU will also be a source of krypton and xenon to address the growing demand of the electronics industry, as well as other air gases for our industrial merchant activity in China.