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(Archived) Shanghai Chemical Industry Park Industrial Gases Co. Awarded Major Contracts with Two Chemical Leaders to Supply Hydrogen and Nitrogen

SHANGHAI, CHINA, May 21, 2003 — Shanghai Chemical Industry Park Industrial Gases Company (SCIPIG), a joint venture between Praxair, Inc. (NYSE:PX) and Air Liquide, has signed major industrial gases pipeline supply contracts with BASF Chemical Co., Ltd. and Shanghai SECCO Petrochemical Co., Ltd.

Under the first contract, SCIPIG will supply hydrogen to BASF for the largest production site worldwide of tetrahydrofuran(THF)/polytetrahydrofuran(PolyTHF) now in construction at Shanghai Chemical Industry Park, the largest chemical industry park in China, situated in Caojing, Shanghai.

The second contract provides for the supply of nitrogen to SECCO’s 900,000 tons per year ethylene cracker and downstream derivative plants in the park.  SECCO is a joint venture among BP, Sinopec and Shanghai Petrochemical Corporation.

The supply agreements with BASF and SECCO firmly establish SCIPIG’s supply capability for customers in the park, as well as demonstrate the combined strengths of Praxair and Air Liquide, two global leading suppliers of industrial gases.

SCIPIG will build two gases plants in the park, including an air separation plant for the supply of nitrogen, oxygen and compressed air, and a HYCO plant for the supply of hydrogen and carbon monoxide. The two new plants are expected to be fully operational in the fourth quarter of 2004.

Domingos Bulus, president of Praxair Asia, said, "These contracts mark a significant step forward in our strategy of capitalizing on the major opportunities available to us in China. They reinforce our commitment to the development of the Shanghai Chemical Industry Park and the overall economic development of China, particularly in greater Shanghai region."

"We are very pleased that both BASF and SECCO have selected SCIPIG for the supply of industrial gases," stated Dr. Minda Ho, chairman and deputy general manager of SCIPIG. "They are important partnerships and we believe they will lead to other customer contracts in this major industrial park."

Praxair China, a subsidiary of Praxair, Inc., is the leading global industrial gases supplier in China, serving a diverse group of industries through the production, sale, distribution and value-added application of industrial gases. Praxair has eight wholly-owned companies and 10 joint ventures in China. In addition to its Shanghai headquarters, it has a representative office in Beijing.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2002 sales of $5.1 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at


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