Linde has won an air gas supply contract with the chemicals producer, Dahua Group.

In accordance with this latest agreement, the global industrial gas company will invest around €70m in the project, located on Songmu Island in Dalian, Northeast China.

Sanjiv Lamba, Member of the Executive Board of Linde AG responsible for Asia expressed his delight at the move. He added, “We are delighted to further expand our long term business relationship with our partner Dahua in Dalian. This move strengthens our position as a leading gases and engineering company in the dynamic Chinese market.”

Under the terms of this on-site agreement, Linde acquires the customer’s two existing air separation units (ASUs) in Dalian, and will operate these. In addition, Linde’s Engineering Division will build a new ASU on site with a production capacity of 38,000 normal cubic metres of oxygen per hour (Nm3/h). Scheduled to go on stream in 2014, the new ASU will replace the two older plants, also meeting rising demand for gaseous oxygen at Dahua’s operations.

The new arrangement is hoped to provide the customer a much greater degree of reliability in its gas supply. The new ASU will also produce surplus liquid gases for the regional market.

As part of the contract agreement, the upgraded gas production facility will be jointly managed by a newly formed 50:50 joint venture gases company between Linde and Dahua. Linde-Dahua (Dalian) Gases Company, Ltd. will also offer industrial gaseous and liquid products and provide relevant engineering services to the neighbouring industrial hubs.

Dahua Group is wholly owned by Dalian State Assets Administration Committee, with 33 subsidiaries in China. Set up in 1933, it is the longest standing chemical material and fertiliser producer in China.