Cryogenmash has announced that a contract has been concluded and signed for the on-site construction of an air separation unit for the Novozlatoust metallurgical plant, at a planned volume of investment for Cryogenmash of around €28m.

The construction and installation of the air separation plant is due for completion in the 4th quarter of 2009, with Cryogenmash independently building the unit and the agreement for the delivery of technical gases for the Novozlatoust electrometallurgical plant (NZEMP) concluded for a period of 20 years.

Dmitry Ermolov, general director of Cryogenmash, commented, “Cryogenmash is a rapidly developing engineering company. Besides the production of the air separation equipment, we render the whole complex of services on designing, constructing and mounting of the air separation productions. The trend of significant importance is the delivery of technical gases, including construction and operation of productions for large industrial consumers. The new on-site project in Zlatoust is one more step in realization of our strategy of development.”

Andrey Mishin, president of the ESTAR companies Group under which the Novozlatoust plant is operated, confirmed, “Cryogenmash company starts the construction together with us; this company will construct its own enterprise near Novozlatoust metallurgical plant on production of technical gases - oxygen, argon and nitrogen for our factory. Without this company we would have to install the necessary equipment by ourselves. And €28m are the considerable investments. We managed to agree, that, in my opinion, is a good example of the modern cooperation of the companies.”

The announcement comes as further confirmation of the company’s developing gas business in the region and the strategic expansion of the Cryogenmash enterprise.

This is affirmed by Vadim Mihalkevich, deputy general director of Technical & Medical Gases Production & Sales for Cryogenmash, as he comments, “The project for Novozlatoust metallurgical plant is already the third project for Cryogenmash in Ural, it opens up the new possibilities in development of the strategically important region. Concentration of several air separation productions increases the reliability of technical gases supply to the enterprises of this region. We have established good relations with metallurgists, we are aware of their requirements and are ready to develop further the gas business in this region and also in other industrial regions of the country.”