Air Liquide to Take Over Air Separation Unit in China

60 Million Euro Investment Air Liquide to Take Over Air Separation Unit in China

2024-09-27 Source: Press release Air Liquide 2 min Reading Time

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Under a long-term contract with Wanhua Chemical Group, Air Liquide will invest close to 60 million euros to take over and operate the Group’s Air Separation Unit in Yantai, China. With this move, Air Liquide will start supplying industrial and medical gases in the city of Yantai and also reinforce its presence in the region of Shandong.

Air Liquide will also build, own and operate a new liquid argon production unit on this ASU to serve Industrial Merchant markets in Yantai and the wider province of Shandong. (Source: Air Liquide) — Air Liquide will also build, own and operate a new liquid argon production unit on this ASU to serve Industrial Merchant markets in Yantai and the wider province of Shandong.
(Source: Air Liquide)

Paris/France – Air Liquide will invest close to 60 million euros to take over and operate an Air Separation Unit (ASU) within the context of a long-term contract with Wanhua Chemical Group, a global leading supplier of chemical innovative products, in the city of Yantai, China. In this context, Air Liquide will also build, own and operate a new liquid argon production unit on this ASU - built by Air Liquide Engineering & Construction - to serve Industrial Merchant markets in Yantai and the wider province of Shandong. This long-term contract, the first signed by the Group with Wanhua, will allow Air Liquide to start supplying industrial and medical gases in the city of Yantai and to reinforce its presence in the region of Shandong.

Within the context of this new partnership, Air Liquide will provide large amounts of nitrogen and oxygen to Wanhua. Building on synergies around this ASU, which is set to be operational at the end of 2024, Air Liquide will also serve nitrogen, oxygen and argon to the local Industrial Merchant markets.

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This partnership allows Air Liquide to start supplying industrial and medical gases in the city of Yantai, the second largest industrial city in Shandong. The Group is thus reinforcing its already strong presence in the province of Shandong, China's third-largest provincial economy, where it already owns and operates four ASUs, a hydrogen production plant, a filling center, as well as a state-of-the-art manufacturing center that produces ASUs and hydrogen production units.

Ronnie Chalmers, Air Liquide Group Vice President supervising Asia Pacific, said: “We are proud to become a strategic partner of Wanhua, a world class chemical group with a strong presence in China and a global outreach. This long-term contract is a strong recognition of Air Liquide’s technological expertise and competitiveness but also of its operational excellence. Becoming a supplier of industrial gases in the city of Yantai will allow us to serve not only a dynamic new partner but also to expand to new Industrial Merchant and healthcare markets. This new venture will actively contribute to our 2025 Advance strategic plan.”

Liao Zengtai, Chairman of Wanhua Chemical Group, said: “This cooperation with Air Liquide in Penglai further deepens our strategic partnership, drives both parties to move towards a new stage of long-term development, and lays a solid foundation for achieving more fruitful results in the future.”

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