Through its Brazilian subsidiary White Martins, Praxair, Inc. has signed a long-term agreement expanding its supply of oxygen (O2) to the world’s largest producer of eucalyptus pulp, Fibria Celulose S/A.
Under the terms of the deal, of which financial details were not disclosed, the Tier One player will build a new plant in order to supply Fibria with an additional 160 tonnes per day (tpd) of O2.
The plant is expected to start up in late 2017 and will help to increase Fibria’s global annual production capacity of 5.3 million tonnes of eucalyptus pulp to 7.25 million tonnes.
Domingos Bulus, President of Praxair South America, signified, “White Martins is proud of the strong relationship we have built with Fibria throughout the years while serving their industrial gas needs at the Três Lagoas and Aracruz plants in Brazil.”
South American expansion
Praxair’s new plant will be built in conjunction with Fibria’s own ‘Horizon 2 Project’ expansion scheme, developing its Três Lagoas facility in the state of Mato Grosso do Sul, Brazil.
gasworld Business Intelligence estimates that the industrial gas market of Brazil is worth approximately $1.6bn, with Praxair, through its subsidiary company White Martins, commanding a dominant market share of around 53%. Business Analyst Toby Pimlott added, “This new plant is a further example of the company’s expansion strategy in the South American country, which has seen new plants being consistently commissioned over the past five years.”
This is Praxair’s second announcement this week regarding new facilities in South America as its hydrogen (H2) plant for Repsol’s La Pampilla Refinery in Peru started up on Tuesday.