The Linde Group has secured a contract with Sinopec Sichuan Vinylon Works (SVW) to jointly build gas plants and produce industrial gases for the long-term supply to SVW’s chemical complex.

SVW is 100% owned by China Petrochemical and Chemical Corporation (Sinopec) and has the largest natural gas-based chemical complex in China.

The partnership will establish a 50:50 joint venture between Linde Gas (Hong Kong) Limited and SVW, in Chongqing Chemical Industrial Park (CCIP), by June 2009.

The collaboration will result in an initial investment of approximately €50m.

SVW is predominantly involved in the production of natural gas-based chemical and chemical fibre products, and is currently expanding its vinyl acetate monomer (VAM) production capabilities.

Dr Aldo Belloni, a member of the Executive Board of Linde AG said, “We are looking forward to this promising partnership with SVW in Chongqing. This joint venture firmly casts Linde’s geographical footprint in Western China.”

He added, “Chongqing is a new territory for Linde, and our continued collaboration with Sinopec is a further example of our long-term growth strategy in China, underpinning our leading position in the Chinese gases market that continues to register a growth momentum in spite of the global economic downturn.”

Xu Zhengning, President of SVW, was also confident about the collaboration, “SVW is the only natural gas-based chemicals producer within Sinopec, and the largest gas-based chemical production site in China. Linde, in the same breath, is one of the largest industrial gas suppliers and engineering providers for customers in over 100 countries. This is why our two companies’ partnership, Linde-SVW, is truly complementing and compatible.”

“This joint project is of great significance to SVW’s VAM expansion project. The new joint venture will meet the demands of SVW’s VAM plant on schedule and cost-effectively, to strive for best economic and social benefits.”

In the first phase of development under the Linde-SVW partnership, a new air separation plant with a capacity of 1,500 tpd of oxygen will be constructed to produce and supply gases by 2011 to SVW’s new 300,000 tpy VAM plant.

This air separation plant will be built and delivered by Linde’s Engineering Division.

In the long-term, the joint venture is intended to expand the capacities of air gases, and also construct synthetic gas (HyCO) plants to meet the overall gases demand by SVW and its associated companies.