Air Liquide to invest €60 million in ASU for Wanhua Chemical Group

Under a long-term contract with Wanhua Chemical, a leading global supplier of innovative chemical products, Air Liquide will invest nearly €60 million to take over and operate an air separation unit (ASU) in Yantai, China.

In this context, Air Liquide will also build, own and operate a new liquid argon production unit (built by Air Liquide Engineering & Construction) on the ASU to serve the industrial merchant market in Yantai and Shandong Province. This is the first long-term contract signed by Air Liquide with Wanhua and will enable Air Liquide to start supplying industrial and medical gases in Yantai and strengthen its presence in the Shandong region.

In this new collaboration, Air Liquide will supply Wanhua with large volumes of nitrogen and oxygen. The ASU will be operational by the end of 2024 and Air Liquide will use the synergies of the ASU to supply nitrogen, oxygen and argon to the local industrial merchant market.

This partnership enables Air Liquide to start supplying industrial and medical gases in Yantai, the second largest industrial city in Shandong Province. The Group will thereby consolidate its strong presence in Shandong Province, the third largest provincial economy in China, where it already owns and operates four air separation units, a hydrogen production plant, a refueling center and an advanced manufacturing center for the production of air separation units and hydrogen production units.

Ronnie Chalmers, Vice President of Air Liquide Asia Pacific, said: "We are honored to be a strategic partner of Wanhua, a world-class chemical group with a strong presence in China and global operations. This long-term contract is a strong recognition of Air Liquide's technical expertise and competitiveness as well as its operational excellence. Becoming an industrial gas supplier in Yantai will enable us to not only serve dynamic new partners, but also expand into new industrial merchants and healthcare markets. This new business will actively promote our 2025 ADVANCE strategic plan."

Liao Zengtai, Chairman of Wanhua Chemical Group, said: "This cooperation with Air Liquide in Penglai further deepens the strategic partnership between the two parties, drives both parties to a new stage of long-term development, and lays a solid foundation for more fruitful results in the future."