Air Liquide is set to invest nearly €60 million to take over and operate an Air Separation Unit (ASU) as part of a long-term agreement with Wanhua Chemical Group, a leading global supplier of innovative chemical products, in Yantai, China. As part of this initiative, Air Liquide will also construct, own, and operate a new liquid argon production unit associated with the ASU, which will be developed by Air Liquide Engineering & Construction. This unit aims to serve the Industrial Merchant markets in Yantai and the broader Shandong province.
This long-term contract marks the first collaboration between Air Liquide and Wanhua, enabling the company to begin supplying industrial and medical gases in Yantai while strengthening its foothold in the Shandong region.
Under this partnership, Air Liquide will supply significant volumes of nitrogen and oxygen to Wanhua. Leveraging synergies related to the ASU, which is expected to be operational by the end of 2024, Air Liquide will also provide nitrogen, oxygen, and argon to the local Industrial Merchant markets.
This collaboration positions Air Liquide to establish a robust supply of industrial and medical gases in Yantai, the second-largest industrial city in Shandong. The agreement further solidifies Air Liquide’s strong presence in Shandong, which is China’s third-largest provincial economy, where the company already operates four ASUs, a hydrogen production facility, a filling center, and a state-of-the-art manufacturing center for ASUs and hydrogen production units.