Air Products Signs Long-Term Contract in Nanjing

04-May-2005

Air Products has signed a long-term contract with Wison (Nanjing) Chemical Company Ltd to supply onsite gases oxygen and nitrogen to Wison's new carbon monoxide (CO) and Methanol plant located in Nanjing Chemical Industrial Park (NCIP), China. An air separation unit (ASU) adjacent to the plant that is capable of producing greater than 1600 tons per day of oxygenis planned to be built and operational by late 2006. Concurrently, Air Products will expand its liquid production capacity to meet customers' demand in the fast-growing merchant market. This plant will be Air Products' sixth plant that will come on-stream in China in 2006-2007 to support its expanding business.

As announced earlier this year, Wison has been awarded a long-term contract to supply CO to Celanese for Celanese's 600,000 MT acetic acid plant being built in NCIP. The plant is expected to be ready for production in late 2006 or early 2007. Gaseous oxygen and nitrogen will be used in a clean-burning coal gasification process to generate CO. Acetic acid is a basic chemical that becomes part of paints, adhesives, plastic bottles, foods, construction materials and hundreds of other products for the growing consumer markets.

The new on-site plant in Nanjing Chemical Industrial Park will also enable Air Products to expand its liquid capacity economically to meet growing demand in China for steel and automobile industries. Nanjing and other cities in Jiangsu Province have attracted a very large amount of investment, both from Chinese companies and major international companies.

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