BOC and Nanjing Iron & Steel Union Co. Ltd (NISCO) have entered a memorandum of understanding to form an industrial gases joint venture.
The Joint venture is to meet the industrial gases needs of NISCO, which produced around 4 million tonnes of steel in 2004. The company is based in Nanjing City, Jiangsu Province, China.
The Joint venture will see the acquisition of NISCO’s existing ASUs and build a new ASU to meet NISCO’s development plan. The joint venture is to operate multiple ASUs with a total oxygen capacity of around 2800 tonnes per day.
The economies of scale and multiple ASU plant arrangement will result in BOC becoming a major industrial gas manufacturer to the region, as it supports NISCO’s expanding steel production.