Industrial Gases major Air Liquide group is going to construct new Air Separation Unit (ASU) in South Africa. According to reports in media yesterday, Air Liquide signed a 20-year contract with JSE-listed steel and vanadium producer Evraz Highveld.
Surprisingly deal went off after the cancellation of JSE listed industrial gases & welding products supplier Afrox. Because of Afrox the Linde group company, steel firm had borne lots of production issues.
Construction would begin soon & commissioning by the end of 2013.
Air Liquide will build a new Air Separation Unit (ASU) with a capacity of 770 tonnes of oxygen per day. The overall investment to design and build the plant will amount to around EUR40 million. Air Liquide officially made a statement that the gas will improve the steel-works productivity and energy performance whilst reducing atmospheric emissions. The new ASU would be designed by Air Liquide engineering and construction teams would also produce liquid oxygen, nitrogen and argon to meet growing demand from South Africa’s industrial merchant market.
Air Liquide Press Release
Senior executive VP for Africa and the Middle East Pierre Dufour described the contract as a milestone for the group and its position within the growing South African market.The gas would help the facility improve its steelmaking productivity, raise its energy efficiency and reduce atmospheric emissions.
Last year only Afrox had announced a R152-million mutilation on its Emalahleni assets after failing to safeguard a renewal from South Africa’s second-largest steel producer. This new invasion will help Air Liquide to expand its footprints in the African continent.
Evraz Highveld Steel & Vanadium Press Statment
Mike Garcia, CEO of Evraz Highveld Steel and Vanadium, commented:“We are delighted to partner with Air Liquide for the supply of oxygen and other gases, which are critical to our processes. Air Liquide brings worldwide experience and we are convinced it will deliver the reliability we require.”