Shanghai Baosteel Gases Limited (Baosteel Gases), China’s leading industrial gas producer, and an affiliate of Warburg Pincus, a global private equity firm focused on growth investing, today announced the formation of a strategic partnership, to jointly explore and develop projects in the industrial gas field.
Furthermore, under the strategic partnership, the two parties have reached agreement with Henan Jinkai Chemical Investment Holding Group to acquire its industrial gas assets for RMB3bn ($489m).
Established in 2008, Baosteel Gases is a wholly owned subsidiary of Baosteel Metal. Thanks to its experienced and expert management team, high professional standard and pioneering spirit, Baosteel Gases has quickly established its industry leadership and has become one of the key development areas among the diversified businesses of Baosteel Group, China’s leading steel conglomerate.
Baosteel Gases cover a variety of areas in industrial gases, synthetic gases, packaged gases and new energy, operating through more than 10 subsidiaries in China’s Eastern, Northwest and Southern regions. Backed by resources of Baosteel Group and robust efforts of the management team, Baosteel Gases has built a strong set of core competitive advantages.
With currently more than $39bn in assets under management, Warburg Pincus has invested over $50bn in 720 companies globally. Since inception, Warburg Pincus has invested more than $14.bn in over 110 energy and industrial companies, covering a wide range of industrial and energy areas such as aircraft, automobile, security equipment, refrigeration, oil and gas, power and renewable energy.
Since entering the Chinese market in 1994, Warburg Pincus has invested more than $4bn (equivalent of more than RMB25bn) into leading Chinese companies in industrial, energy, consumer and retail, healthcare, real estate and TMT industries.
Mr. Jia Yanlin, Chairman of Baosteel Metal, a subsidiary of Baosteel Group, commented, “Baosteel Gases is one of the key platforms and brands under Baosteel Metal. The strategic partnership with Warburg Pincus is a combination of the best players in their respective fields. I am confident that the cooperation will accelerate the growth of Baosteel Gases, in its efforts to become China’s most competitive industrial gas provider, and be able to compete with the world’s strongest multinationals in key fields in terms of scale of gases supply, air separation and integration, applied technology, pipeline construction and air liquification operation.”
Mr. David Li, Managing Director of Warburg Pincus responsible for the firm’s investment activities in Asia, commented, “As China’s most competitive steel conglomerate, Baosteel Group has achieved impressive development in growing its diversified business platforms including Baosteel Metal. Warburg Pincus is committed to the long - term prospects and potential of the industrial gas in China.”
“We are honored to partner with Baosteel Gases, enabling us to access the huge growth potential of China’s industry gas industry. Our partnership with Baosteel Gases is of particular significance to both parties, demonstrating the latest progress in our efforts to participate the ongoing Chinese SOE reforms, in the backdrop of the economic structure transformation and deepening reform in China.”