Praxair Inc. and Samsung Electronics have reportedly signed a memorandum of understanding, under which the US industrial gases company will increase production capability to 3,300 tpd at Samsung Electronics’ advanced thin-film-transistor, liquid-crystal-display (TFT-LCD) factory in Tangjeong, South Korea.

Increasing production volumes of liquid oxygen, nitrogen and argon, to meet the demand Praxair will build a new air separation plant with a capacity of 2,000 tpd, scheduled to start up in the third quarter of 2009.

K.H. Lee, President of Praxair Korea, “We are committed to providing Samsung Electronics with world-class service and a reliable supply of industrial gases as Samsung meets the rapidly growing demand in the LCD markets.”

“This project is an extension of the strong relationship Praxair Korea has enjoyed with Samsung for more than 15 years,” Lee added.

Praxair began operation of another air separation plant at the same location in 2007 and in addition to nitrogen, oxygen and argon, the company supplies helium and hydrogen by pipeline to the facility. Additional volumes of liquid oxygen, nitrogen and argon will be supplied to the growing Korean merchant market from the new facility.

Samsung’s newest complex in Tangjeong is the world’s first seventh-generation TFT-LCD complex, comprised of four production lines, with Praxair Korea supplying Samsung’s manufacturing complexes in Gihueng and Hwasung, as well as Tangjeong.

In 2007, Praxair’s sales to the global electronics industry were believed to have stood at $725m.