Russia: Air Liquide signs a new major contract in the Chemical industry

Air Liquide announces the signature of a long term agreement with RusVinyl – a joint venture between a Russian leading chemical company Sibur and the Belgian PolyVinyl Chloride (PVC) major Solvin (75% Solvay – 25% BASF). Air Liquide will supply oxygen, as well as nitrogen and compressed dry air to RusVinyl’s new world-scale PVC plant being built in Kstovo, in the region of Nizhny Novgorod.

Air Liquide will invest, build and operate a new state-of-the-art Air Separation Unit (ASU) with a capacity of more than 350 tonnes per day of oxygen in Kstovo, which is scheduled to start-up at the end of 2012. In addition, Air Liquide will produce a large quantity of liquid air gases (oxygen, nitrogen and argon) to meet the needs of the industrial customers in this region.

The Air Liquide investment amounts to €60 million for the production facilities and for the supply chain altogether.

The Russian Chemical industry is expected to develop strongly over the next decade. PVC is a key product for many industries and enjoys a solid growth in Russia. It is a versatile, durable and recyclable polymer which is used among others in automotive, plumbing, insulation, construction materials, decoration of houses, clothes, and electrical equipment. PVC consumption in the country represents around 1 million tons per year, part of which still needs to be imported.

Guy Salzgeber, member of the Air Liquide Group Executive Committee, Vice-President North and Central Europe, declared: “We are very proud that RusVinyl and its shareholders have selected Air Liquide to become their long term partner for their new facility in Nizhny Novgorod region. This new investment allows us to expand our activities on a long term basis with a major player of the Chemical industry in Russia and create a solid basis for future developments of gas sales in a very promising economic region of Russia.”