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The Linde Group and Sinopec subsidiary conclude long-term agreement
on industrial gases supply in Chongqing, China |
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Munich, 6 April 2009 - The technology group The Linde Group has
secured a contract with Sinopec Sichuan Vinylon Works (SVW) to
jointly build gas plants and produce industrial gases for the
long-term supply to SVW's chemical complex. This collaboration will
result in an initial investment of approximately EUR 50 million.
This partnership will establish a 50:50 joint venture between Linde
Gas (Hong Kong) Limited and SVW in Chongqing Chemical Industrial Park
(CCIP) by June 2009. SVW in Chongqing is mainly engaged in producing
natural gas-based chemical and chemical fibre products, and is
currently expanding its vinyl acetate monomer (VAM) production
capabilities.
"We are looking forward to this promising partnership with SVW in
Chongqing. This joint venture firmly casts Linde's geographical
footprint in Western China," said Dr Aldo Belloni, member of the
Executive Board of Linde AG. "Chongqing is a new territory for Linde,
and our continued collaboration with Sinopec is a further example of
our long-term growth strategy in China, underpinning our leading
position in the Chinese gases market that continues to register a
growth momentum in spite of the global economic downturn."
"SVW is the only natural gas-based chemicals producer within Sinopec,
and the largest gas-based chemical production site in China. Linde,
in the same breath, is one of the largest industrial gas suppliers
and engineering providers for customers in over 100 countries. This
is why our two companies' partnership, Linde-SVW, is truly
complementing and compatible," said Xu Zhengning, President of SVW.
"This joint project is of great significance to SVW's VAM expansion
project. The new joint venture will meet the demands of SVW's VAM
plant on schedule and cost-effectively, to strive for best economic
and social benefits."
In the first phase of development under this Linde-SVW partnership, a
new air separation plant with a capacity of 1,500 tonnes per day of
oxygen will be constructed to produce and supply gases by 2011 to
SVW's new 300,000 tons/year VAM plant. This air separation plant will
be built and delivered by Linde's Engineering Division. In the
long-term, the joint venture is intended to expand the capacities of
air gases and also construct synthetic gas (HyCO) plants to meet the
overall gases demand by SVW and its associated companies.
SVW is 100% owned by China Petrochemical & Chemical Corporation
(Sinopec) and has the largest natural gas-based chemical complex in
China. SVW's existing products include vinyl acetate monomer (VAM),
methanol (MeOH), polyvinyl alcohol (PVA) and ammonium. SVW's total
investment for its VAM expansion project in CCIP is estimated to be
EUR 580 million. SVW's VAM expansion project will include the
construction of an acetylene plant unit, which employs a partial
oxidation technology that requires oxygen.
VAM is an essential chemical building block used in a wide variety of
industrial and consumer products. VAM is a key ingredient in emulsion
polymers, resins, and intermediates used in paints, adhesives,
textiles, wire and cable polyethylene compounds, laminated safety
glass, packaging, automotive plastic fuel tanks and acrylic fibers.
The Linde Group is a world leading gases and engineering company with
almost 52,000 employees working in around 100 countries worldwide. In
the 2008 financial year it achieved sales of 12.7 billion euro. The
strategy of The Linde Group is geared towards sustainable
earnings-based growth and focuses on the expansion of its
international business with forward-looking products and services.
Linde acts responsibly towards its shareholders, business partners,
employees, society and the environment - in every one of its business
areas, regions and locations across the globe. Linde is committed to
technologies and products that unite the goals of customer value and
sustainable development.
In Greater China, Linde is headquartered in Shanghai and has around
50 wholly-owned companies and joint ventures, and more than 100
operational plants in major industrial hubs across the country, with
around 2,500 employees.
For more information, see The Linde Group website at www.linde.com.
Further information:
Press Investor Relations
Uwe Wolfinger Thomas Eisenlohr
Telephone: +49.89.35757-1320 Telephone: +49.89.35757-1330
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement. Copyright © Hugin AS 2009. All rights reserved.
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