Corporate News
Munich, 6 April 2009 - The technology group The Linde Group has secured a contract with Sinopec Sichuan Vinylon Works (SVW) to jointly build gas plants and produce industrial gases for the long-term supply to SVW's chemical complex. This collaboration will result in an initial investment of approximately EUR 50 million.
This partnership will establish a 50:50 joint venture between Linde Gas (Hong Kong) Limited and SVW in Chongqing Chemical Industrial Park (CCIP) by June 2009. SVW in Chongqing is mainly engaged in producing natural gas-based chemical and chemical fibre products, and is currently expanding its vinyl acetate monomer (VAM) production capabilities.
"We are looking forward to this promising partnership with SVW in Chongqing. This joint venture firmly casts Linde's geographical footprint in Western China," said Dr Aldo Belloni, member of the Executive Board of Linde AG. "Chongqing is a new territory for Linde, and our continued collaboration with Sinopec is a further example of our long-term growth strategy in China, underpinning our leading position in the Chinese gases market that continues to register a growth momentum in spite of the global economic downturn."
"SVW is the only natural gas-based chemicals producer within Sinopec, and the largest gas-based chemical production site in China. Linde, in the same breath, is one of the largest industrial gas suppliers and engineering providers for customers in over 100 countries. This is why our two companies' partnership, Linde-SVW, is truly complementing and compatible," said Xu Zhengning, President of SVW. "This joint project is of great significance to SVW's VAM expansion project. The new joint venture will meet the demands of SVW's VAM plant on schedule and cost-effectively, to strive for best economic and social benefits."
In the first phase of development under this Linde-SVW partnership, a new air separation plant with a capacity of 1,500 tonnes per day of oxygen will be constructed to produce and supply gases by 2011 to SVW's new 300,000 tons/year VAM plant. This air separation plant will be built and delivered by Linde's Engineering Division. In the long-term, the joint venture is intended to expand the capacities of air gases and also construct synthetic gas (HyCO) plants to meet the overall gases demand by SVW and its associated companies.
SVW is 100% owned by China Petrochemical & Chemical Corporation (Sinopec) and has the largest natural gas-based chemical complex in China. SVW's existing products include vinyl acetate monomer (VAM), methanol (MeOH), polyvinyl alcohol (PVA) and ammonium. SVW's total investment for its VAM expansion project in CCIP is estimated to be EUR 580 million. SVW's VAM expansion project will include the construction of an acetylene plant unit, which employs a partial oxidation technology that requires oxygen.
VAM is an essential chemical building block used in a wide variety of industrial and consumer products. VAM is a key ingredient in emulsion polymers, resins, and intermediates used in paints, adhesives, textiles, wire and cable polyethylene compounds, laminated safety glass, packaging, automotive plastic fuel tanks and acrylic fibers.
The Linde Group is a world leading gases and engineering company with almost 52,000 employees working in around 100 countries worldwide. In the 2008 financial year it achieved sales of 12.7 billion euro. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment - in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development.
In Greater China, Linde is headquartered in Shanghai and has around 50 wholly-owned companies and joint ventures, and more than 100 operational plants in major industrial hubs across the country, with around 2,500 employees. ´
For more information, see The Linde Group website at www.linde.com.
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Thomas Eisenlohr Telephone: +49.89.35757-1330 |