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Air Liquide Invests in China Gases Plant

29.06.2021 - French gases group Air Liquide has announced plans to invest about €70 million in building a plant in Wuhan, China, to supply a major memory chipmaker, whose identity was not disclosed. Air Liquide will build, own and operate the ultra-high purity industrial gases plant, which will produce 52,000 Nm3/hr of nitrogen, as well as oxygen, argon and other gases. The facility is planned to be operational in 2022.

“We are pleased to strengthen our partnership with our client, a flash memory leader we have been successfully collaborating with for more than 12 years. This new production facility will strengthen Air Liquide’s position in China and support the growth momentum of the group’s electronics activities in the country,” said François Abrial, member of Air Liquide’s executive committee supervising Asia-Pacific.

Secured by a new long-term supply agreement with the chipmaker, the French gases producer added that the contract will more generally allow the group to support the growth of the semiconductor sector in the Wuhan basin, noting that in recent years, the city of Wuhan has been actively supporting the development of a high-tech hub, particularly for the NAND flash memory chips industry.

Air Liquide in China already operates nearly 120 plants and employs close to 5,000 people. With a strong presence in the key coastal industrial areas, the company is now expanding into the center, south and west of the country.

Closes purchase of South African oxygen site

In separate news, Air Liquide on Jun. 24 closed its acquisition of Sasol’s oxygen production site in Secunda, South Africa. The deal was originally announced on Jul. 29, 2020.

The site, which Air Liquide said is the biggest oxygen production hub in the world, hosts 16 air separation units (ASUs), with a total installed capacity of 42,000 t/d. Since 2018, the group has also been operating a 17th ASU with a total capacity of 5,000 t/d.

Air Liquide plans to cut the site’s CO2 emissions by 30-40% within the next 10 years, initially investing approximately 8 billion South African Rand (about €480 million).

In addition, Air Liquide and Sasol have launched a Request for Proposal (RFP) to pursue supply of 600 MW of renewable energy to the Secunda operations by 2025. The RFP is part of a joint commitment to buy up to a total of 900 MW renewable energy by 2030.

“The finalization of this deal is a key milestone in our ambition to work together with Sasol, our partner for 40 years, to combine operational efficiency and reduction of CO2 emissions while making a meaningful contribution to the economy of South Africa,” said Benoît Potier, Air Liquide’s chairman and CEO. “We are pleased to welcome the employees who are joining us from Sasol and are looking forward to modernizing the site and implementing our decarbonization plan.”

Author: Elaine Burridge, Freelance Journalist