Linde has in cooperation with its Chinese joint venture partner, the Shanghai Coking & Chemical Corporation, concluded a long-term supply agreement with Bayer Polyurethane (Shanghai) Ltd.

The agreement, which covers the supply of hydrogen and carbon monoxide for a period of 15 years, provides for the construction and operation of an on-site facility at the Bayer Integrated Site at the Shanghai Chemical Industry Park in Caojing, near Shanghai. The investment volume is around 60 million euros.

Synthesis gas

A main feedstock is a synthesis gas generated by the Shanghai Coking & Chemical through environmentally friendly coal gasification. 'This production complex builds on China's plentiful coal reserves to produce superior raw materials. Thanks to natural gas and LPG as supplementary feedstock and redundant process units, this complex will offer extraordinary flexibility and security of supply,' explains Dr. Aldo Belloni, member of the executive board of Linde and responsible for the business segment Gas and Engineering.

\\$quot;Hydrogen and carbon monoxide are primarily used in the manufacture of intermediate products for polyurethane (PU) production. PU is a versatile high performance plastic, which is used for example in consumer goods as well as in the automotive and construction industries.\\$quot;

Linde and Shanghai Coking working together

Linde and Shanghai Coking have been working together on the production of hydrogen, carbon monoxide and carbon dioxide as well as cryogenic technologies for many years. A first on-site plant of the same type for the supply of Bayer in Caojing will start operation mid-2006.

In securing this second contract, the joint venture, Shanghai HuaLin Industrial Gases, which will be erecting the new facility in Caojing until mid-2008, will become the leading supplier for these two gases at one of the largest and most dynamic chemical sites in China. Bayer Polyurethane (Shanghai), Linde and Shanghai Coking have also agreed to cooperate on expanding capacities at the Bayer Integrated Site in future.