The Linde Group, an industrial gases and engineering company, has inked a deal with Wanhua Chemical Group to build two additional energy efficient steam-driven air separation units (ASUs) in Shandong Province, China.
Under the new agreement, Linde will spend €108m for the construction of ASUs that will help to expand the supply of gas to Phase II of Wanhua Chemical's Yantai operations.
Upon operational in 2019, the facilities will be one of Linde's most advanced gaseous and liquid production sites in Asia Pacific.
The new units will improve the reliability and stability of gas supply, while also boosting production flexibility and slashing production costs.
At present, Linde has supply agreements with Wanhua Chemical in Yantai and Ningbo, China, as well as in Kazincbarcika, Hungary.
The latest Yantai Wanhua deal is the fourth between the two companies, as Wanhua Chemical looks to integrate its global supply chain.
Linde COO for Asia Pacific and member of the executive board Sanjiv Lamba said: “The agreement with Wanhua Chemical underscores our long and valued partnership. China continues to be an important part of Linde's Asia profitable growth strategy.
“Aside from robust domestic demand, Chinese businesses are increasingly looking for opportunities abroad. Being able to meet the demand for high quality industrial gases, delivered with the same reliability and efficiency, anywhere in the world, is Linde's compelling proposition for companies that want to take their business global."