Praxair, Inc has finalised a supply agreement with United Steel Company (SULB) in Bahrain. According to the agreement, Praxair will supply oxygen, nitrogen and argon which will then be used in SULB’s direct iron reduction plant and steel melt shop.
The plant will be located in the Al-Hidd industrial area of Bahrain and is due to commence operation in the fourth quarter of 2012. Within the agreement, Praxair has committed to the construction of a new air separation plant with an oxygen capacity of more than 350 tons per day. The plant will also produce liquid products for sale to the regional marketand is expected to be owned and operated by a joint venture company between Praxair and the ROC Group.
Khalid A Al-Qadeeri, SULB’s Chairman and Managing Director is confident in the contract. He stated, “This business agreement with Praxair is consistent with SULB's strategy to outsource non-core operations to experienced global partners who can bring value to our steel project through their operational expertise.”
“SULB selected Praxair after a global competitive bidding process and we are confident that Praxair, with its long experience in supporting the steel industry, will provide us with safe, reliable and efficient operations.”
Todd Skare, President of Praxair Europe and the Middle East, responded, “We are delighted to be partnering with SULB on its new steel project at Al-Hidd, Bahrain. The agreement confirms Praxair's commitment to establishing a fully integrated industrial gas business in Bahrain and neighboring countries, in collaboration with our JV partner, the ROC Group of Kuwait. The signing of this contract is a result of Praxair's competitive supply system, integration with our established JV partner and a flexible design that best meets the customer's gas supply needs now and in the future.”