GUANGZHOU, China, April 10, 2006 — Praxair China, a leading industrial gases supplier in China, has entered into a new long-term agreement with Lianzhong (Guangzhou) Stainless Steel Corp. (Lianzhong) for the supply of oxygen, nitrogen and argon to its stainless steel works, which is under construction in the Guangzhou Economic and Technology Development Zone (GETDD).
Praxair China will build, own and operate a state-of-the-art air separation plant due for commissioning in the fourth quarter of 2006 to supply high volumes of pipeline oxygen, nitrogen and argon to Lianzhong. The facility will provide a backup supply of merchant liquid products to the local market.
Invested in by Taiwan-based Yieh United Steel Corp. (YUSCO), one of the largest integrated stainless steel mills in Southeast Asia and the world’s seventh-largest stainless steel producer, Lianzhong is China’s first overseas-invested integrated stainless steel company. It will be the largest stainless producer in Southern China. The first phase of the project currently produces 300,000 tons per year of cold rolled stainless steel coils. Phase II, which will begin production in late 2006, will produce 800,000 tons of stainless steel slabs and hot rolled coils.
Commenting on this new development, Praxair China President David Chow said, “This agreement is of great importance for the company. It reinforces our confidence in the economic development of China. With six air separation units in Guangdong Province, Praxair will be the largest industrial gases operator in the region and will provide unequalled reliability to our customers. The supply to Lianzhong adds another leading industrial player to Praxair’s portfolio of customers. It strengthens Praxair’s position as the top supplier to the leaders of Chinese industry.”
Lianzhong (Guangzhou) Stainless Steel Corporation
Invested by Taiwan-based Yieh United Steel Corp, Lianzhong (Guangzhou) Stainless Steel Corporation (LISCO) is a large scale, modern integrated stainless steel production enterprise approved by the State Council. Designed with the world’s most advanced cutting edge technology, LISCO will be the first and best-integrated stainless steel manufacturer in the Southern China. The plant will have melting shop, continuous slab caster, hot strip mill and cold rolling mill. LISCO Project meets the strong demand of economic growth in the area and will keep clean production method to protect the environment. Its design has been granted as one of the Key Engineering Projects of Guangdong Province in 2005 and also been listed as the Encouraging Projects of State.
Yieh United Steel Corporation (YUSCO)
Yieh United Steel Corporation (YUSCO) was founded in December 1988. With about 1,500 employees and the total investment exceeding 40 billion N.T. Dollars, YUSCO is the largest integrated stainless steel mill in Southeast Asia and the world seventh largest stainless steel producer. The plant is located in Kaohsiung County, southern Taiwan.
About Praxair China
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. With over 1000 employees across the country, Praxair China, headquartered in Shanghai, operates 13 wholly owned companies and 11 joint ventures. More information on Praxair China is available on the Internet at www.praxair.com.cn.
With 27,000 employees and operations in 40 countries, Praxair, Inc. (NYSE: PX) is a global, Fortune 500 company. Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2005 sales of $7.7 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 www.praxair.com.