China is currently the second largest industrial gas market in the world, behind the US. Many Tier One companies are therefore keen to expand their respective footprints in the region, as displayed by the following recent capacity additions.
Messer has recently opened its biggest carbon dioxide (CO2) recovery plant in Nanjing, China. The plant has a capacity of 150,000 tonnes per year (410 tpd), with the high purity nature of the CO2 making it suitable for the beverage industry.
The new production facility has led to the company becoming the most important provider of recycled CO2 in the country, with the plant mainly serving clients in the food & beverage and chemical end-use sectors.
We estimate that, for 2015, Messer commanded a market share of 4% in China. The vast majority of carbon dioxide plants in China are currently operated by Linde and, unsurprisingly, are located in the more densely populated eastern regions of the country. Messer operate several additional CO2 plants in the country, two of which are in the Yunnan and Sichuan provinces.
Linde recently expanded its commitment in China through a €110m ($117m) investment in new onsite production facilities. Through its electronics gases joint venture in China, Linde LienHwa, together with Linde’s Engineering Division, will design and construct multiple gaseous nitrogen (N2) plants with a combined capacity of over 110,000 Nm3 per hour, plus several other bulk gas supply systems.
Linde are currently the largest Tier One company in China, in revenue terms, with the company and its associated subsidiaries holding a market share of approximately 16%.
The electronics sector in China is proportionally smaller than other markets in the North Pacific such as Taiwan, Japan and South Korea. However, electronics end-users still account for almost $1bn in gas sales.
In July 2016, Air Products unveiled plans to build a new plant and all the associated infrastructure in the Pukou Economic Development Zone in Nanjing, Eastern China. This new development is nearby to Air Products’ existing supply chain in the Nanjing Chemical Industry Park (NCIP), where the corporation serves several hundred customers across the area via pipelines and various other supply modes.
It is understood that the plant is to supply ultra-high purity gases to its advanced manufacturing customers in the park. These customers are included in the electronics, manufacturing and healthcare business sectors.
More recently, Air Products also announced the commissioning of an ASU in the Guangdong province to, support of a wide range of industries in the region.
Praxair has clinched a string of vacuum pressure swing adsorption (VPSA) construction and supply deals in China in a continuation of its environmental solutions strategy in the North Pacific rim country.
The plants will produce O2 for use in Jiangbin Water Treatment Co., Ltd’s ozone manufacturing process at its facility in the Zhejiang province, making it the first large-scale facility to use the ozone process to treat discharge from dye and textile finishing processes in the North Pacific Rim country.
In the coming months, gasworld Business Intelligence will be publishing its full analysis of the Chinese industrial gases market. To be the among the first to receive this information, please subscribe to Business Intelligence Online, or contact gasworld Business Intelligence at email@example.com