Fresh from a rousing set of 2010 financial results, Messer has today consolidated its position in Vietnam with the signing of a 25-year supply contract with the Hoa Phat Group.
The deal is Messer’s second major supply contract with the Hoa Phat Group and will see the company invest up to $26m in the production facility.
Messer Haiphong, the Vietnamese subsidiary of the world’s largest privately run industrial gases specialist Messer, will guarantee the supply of gases to the second phase of Hoa Phat Steel Integrated Complex.
The new air separation unit (ASU) will produce some 1300 tonnes of air gases such as argon, oxygen and nitrogen per day, increasing Messer Haiphong’s current production capacity by around 250%. Messer is thereby consolidating its position in the industrial gases market in northern Vietnam and strengthening its relationship with Hoa Phat Group.
The unit will be integrated in the existing steel complex of Hoa Phat Steel Joint Stock Co. Ltd. in Kinh Mon Town, Hai Duong Province. It is understood that the unit is due to go into operation in July 2012.
In 2007, Messer had already invested $20m in the construction of an ASU to meet the gas requirements of Hoa Phat Steel Integrated Complex’s first phase. This unit, which was commissioned by Messer Haiphong in October 2010, is the largest of its kind to date in Vietnam.
Meanwhile, it’s something of a double announcement from Frankfurt in Germany, with Messer announcing that another of its Vietnamese subsidiaries, Messer Binh Phuoc, is also investing $6m in the construction of a production facility for liquid carbon dioxide in the south of Vietnam.
The facility is expected to be completed at the end of 2012 and will meet the demand for liquid carbon dioxide in the southern part of Vietnam.
In China and Vietnam, Messer achieved total sales of €246m in 2010. In Vietnam alone, Messer almost doubled its sales in 2010 compared with the previous year.