Taiyo Nippon Sanso signed an investment agreement with the Dalian Changxing Island Harbor Industrial Zone Administrative Committee to supply industrial gas to the Dalian Changxing Island Harbor Industrial Zone.
The company had reached a basic agreement with the city of Dalian to cooperate in the development of this area through monopolistic production and marketing of the liquid oxygen and nitrogen which led to the signing of this contract.
Specifically, for the first stage this means the installation of a cryogenic air separation facility with a capacity of 5,000 Nm3/h, with operation to commence in 2009. Plans call for eventually expanding this to the level of 20,000 Nm3/h.
Changxing Island is an important base for the new overseas liberalization strategy, Five points One Line, which is a major business in the eleventh 5-year plan for new external development project of Liaoning Province.
This is a plan which calls for the establishment of an industrial area mainly for ship building and the petrochemical industry. It is located about 130km northwest of Dalian. STX shipbuilding, which is part of the Korean conglomerate called the Ssang Yong Group, has already resolved to move into the area. Major Chinese petrochemical companies are also considering moving to the area.
As part of the industrial gas business of Taiyo Nippon Sanso in China involving production and marketing, this marks their 4th centre, following those in Dubai, Shanghai and Suzhou. They have entered into the final stage of the contract. If the contract is signed, this will mark the first instance whereby a Japanese industrial gas company obtained monopolistic rights for supplying gas.