The Messer Group is set to build the largest industrial gases production facility in Vietnam after signing a new supply deal with the country’s largest steel producer.
Under the contract with Hoa Phat Steel, Messer will construct two plants in the Dung Quat economic zone in South Central Vietnam to supply oxygen (O2), nitrogen (N2) and argon (Ar) to the steelworks by pipeline.
Messer will invest over $90m in the development with both plants due to start operations in November 2018.
The sites will produce 80,000 Nm3 of O2 and 160,000 Nm3 of N2 per hour, corresponding to 2,700 tpd and 4,800 tpd, respectively.
gasworld Business Intelligence estimates that the industrial gas market in Vietnam is valued at just under $185m. Messer is currently the second largest company in the country’s retail sector, with a share of approximately 22%.
The addition of these new facilities will build upon Messer’s substantial industrial gas revenues already generated from metallurgical clients.
This sector produced the majority of sales for industrial gas companies in 2015, with multiple facilities serving Vietnamese customers in the steel industry. For example, Messer, Vietnam Japan Gas, Linde and Air Liquide all hold supply scheme contracts in the sector.
For more in-depth analysis of the Vietnam industrial gas market, please contact firstname.lastname@example.org, or call +44 1872 225031