Air Products (NYSE: APD) today announced it will build, own and operate an air separation unit (ASU) and integrated liquefier in the Nanjing Chemicals Industrial Park in Nanjing, China. Air Products has won a long-term contract to supply oxygen and nitrogen to Wison (Nanjing) Clean Energy Ltd., Inc.'s (Wison Energy) coal to syngas gasification facility in Nanjing. Air Products will also operate a liquefier and increase argon production to supply the growing regional merchant liquid industrial gas market. The new operations are to be commercial in 2013.
The new ASU will produce over 1,500 tons per day (TPD) of gaseous oxygen and over 1,900 TPD of gaseous nitrogen. The liquefier will more than triple Air Products' current production of liquid oxygen and liquid nitrogen, and argon production will be increased by over 40 percent for the merchant market in the region.
"This new ASU will be the third we have built and will operate to supply the Wison Energy facility with tonnage quantities of industrial gases. We are pleased to grow this relationship with Wison and believe our history of supply reliability and safety record, among other factors, were key to winning this business. The location of this facility and ability to increase liquid product capacity is essential to our growing sales in this region and fits well with our business strategy for this important market," said Steve Jones, Air Products' China president. Jones, a member of the company's corporate executive committee, is based in Shanghai as part of Air Products' corporate strategy to support significant growth opportunities and accelerate the company's development in emerging markets.
"Wison Energy is pleased to partner with Air Products again. As one of the leading suppliers for coal-based gases in China, we not only supply to customers reliable, high-quality hydrogen, CO and syngas, but also hope to prosper together and form a long-term strategic partnership along a successful supply chain. I believe this cooperation is an extension of our strong relationship. It will form a solid foundation for Wison Energy's future business development," said Liu Hongjun, President of Wison (Nanjing) Clean Energy Ltd., Inc.
Air Products currently operates two ASUs supplying Wison Energy with tonnage amounts of industrial gases to support their operations in the Nanjing Chemicals Industrial Park. The initial ASUs supporting the petrochemical facility were brought onstream in 2007 and 2009.
"The three ASUs at this site provide Air Products the opportunity for additional customers for both tonnage gaseous supply and to meet the needs of the growing merchant market. It is a tremendous location for a cluster of industrial gas manufacturing plants," said Jones. Nanjing Chemical Industrial Park is a state-level petrochemical park in China. Located about 30 kilometers north of Nanjing on the northern part of the Yangtze River, the Park is a major constituent of the Nanjing New & High Technology Industry Development Zone with superior support of a good transportation network and logistics.
Air Products has been operating in China since 1987 and was one of the first multinational industrial gas corporations to invest in the country. With over 40 operating entities, 50 production facilities and 2,200 employees, the company has already established a strong market position in China, serving a broad range of industries.
Wison Energy is a member of Wison Group and has been in operation since 2003. It uses coal as the feedstock and by applying clean coal production technology, supplies high-quality CO, methanol, H2, syngas, enriched H2 and sulfur to customers. It is one of the leading suppliers for coal based gases in China. Wison Group, headquartered in Shanghai, is a diverse conglomerate, specialized in high technology content businesses such as engineering services, offshore and marine, clean energy, bio-pharmaceutical and communication.
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