EUR 95 million investment under umbrella of long-term gas supply contract with JSC ArcelorMittal in Temirtau
Successful market entry in emerging economy
Munich, 4 May 2010- The technology group The Linde Group is set to construct a large, state-of-the-art air separation plant for ArcelorMittal, the world's largest steel corporation, at ArcelorMittal's Temirtau site in Kazakhstan. This plant will be Kazakhstan's first industrial-scale development with a daily capacity of 2,000 tonnes (tpd). It is set to go on stream mid-2012. With an investment value of around EUR 95 million, it is also the first plant that Linde will engineer and operate for a customer in Kazakhstan.
"This investment gives us a successful foothold in Kazakhstan's emerging economy. Kazakhstan is a country that has around 40 billion barrels of proven oil reserves," says Dr Aldo Belloni, Member of the Executive Board of Linde AG. "We are particularly pleased to partner with such a long-standing, well-established customer as ArcelorMittal in the move to further expand our reach in Eastern Europe and Central Asia. At several locations in Germany and Eastern Europe, we already supply ArcelorMittal with various gases."
Under the umbrella of this collaborative venture, Linde signed a long-term contract with JSC ArcelorMittal Temirtau to supply the Temirtau steelworks with oxygen and nitrogen gas. The new plant to be built by Linde will also supply liquefied oxygen, nitrogen and argon to the merchant market in Kazakhstan. Target customers in central and southern Kazakhstan are mainly concentrated in the steel and manufacturing industries. The new plant will also supply customers specialised in oil and gas in western Kazakhstan. Linde's Engineering Division is responsible for constructing the plant. Once it goes on stream, it will be operated by the local Linde Gas company. The new facility will partly replace existing air separators which ArcelorMittal operates itself.
With an annual capacity of around four million tonnes, the ArcelorMittal Temirtau steelworks in north-eastern Kazakhstan produces hot rolled coils, cold rolled coils, galvanised and pre-painted coils. Recently it has also commissioned a bar and light section mill. The flat products are used mainly for the mechanical industry, and pipe and tube sector for various applications. The bar products will be meeting the requirement of the domestic construction needs.
About The Linde Group
The Linde Group is a world leading gases and engineering company with almost 48,000 employees working in more than 100 countries worldwide. In the 2009 financial year it achieved sales of EUR 11.2 billion. 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.
For more information, see The Linde Group online at http://www.linde.com
ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks.
With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature. Through its core values of Sustainability, Quality and Leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources.