The Linde Group has signed a further long-term on-site supply contract for industrial gases with Hungarian chemical company BorsodChem Zrt.

The agreement involves the construction of a new air separation unit (ASU) at BorsodChem’s Kacinzbarcika site in north-eastern Hungary, at an investment of around €26m.

The new air separation plant is due to come on stream in November 2010 and will supply BorsodChem by pipeline with up to 7,000 cubic metres of gaseous oxygen and nitrogen per hour.

Reflecting on the announced contract, Dr Aldo Belloni, member of the Executive Board of Linde AG, commented, “This agreement seals the long-term future of our relationship with one of our largest customers in Europe. Moreover, this investment confirms our leading position in this key market in Eastern Europe.”

With the addition of the new investment, Linde operates two ASUs for the supply of air gases and three steam reformers for the supply of gaseous hydrogen and carbon monoxide to BorsodChem Zrt at Kazincbarcika. Linde’s total investment at the site exceeds €200m.

The new plant is also expected to produce liquefied oxygen, nitrogen and argon for the merchant market.