Air Liquide building air separator for Enakievo steel plant
DONETSK. Oct 19 (Interfax) - Air Liquide, a French industrial gas producer, will build a new ASU-1400 air separation unit to meet the needs of Metinvest's Enakievo Metallurgical Plant (EMZ) at a total cost of EUR130 million.
The new unit will enable Air Liquide to produce oxygen, nitrogen and argon for EMZ under an outsourcing arrangement, Interfax reported from the laying of the first foundation stone for the ASU-1400 on Thursday.
The unit will supply industrial gases to EMZ and other Ukrainian companies. Air Liquide is handling the design, construction and operation of the unit, which will have capacity to produce 1,700 tonnes of oxygen, nitrogen and argon per day.
Metinvest is spending about EUR26 million on the project. Air Liquide's investment will be financed jointly with the European Bank for Reconstruction and Development, which will provide a loan of EUR85 million.
The construction of the unit will create about 50 new jobs in Enakievo, and Ukraine will receive EUR100 million of foreign direct investment as a result of the project, according to materials prepared for the event.
The application of innovative technologies will minimize energy use and eliminate pollution, Air Liquide said.
Industrial outsourcing, which allows companies to hand over operation of auxiliary production facilities to specialized firms and focus all their resources on core activities, is now commonly used in the world. In Ukraine, this is the first time that a steelmaker is entering into a partnership with an outside company to meet its requirements for industrial gases.
In addition to investing in the new ASU for Metinvest, Air Liquide plans to develop top-level technical and operational expertise in Ukraine in order to support its long-term growth on the Ukrainian market, which is promising for supplying industrial gases, the French company's vice president for North and Central Europe and member of its executive committee, Guy Salzbgeber was cited as saying in the reference materials.
The project will use technology for production of oxygen under high pressure, which uses far less energy and reduces greenhouse gas emissions compared to the low-pressure air separation technology more commonly used in CIS countries.
It was reported earlier that Metinvest signed a long-term contract with Air Liquide, which will supply industrial gases to EMZ after building the unit on the premises of the steel plant. The unit is scheduled to start up in mid-2014.
The EBRD is providing a loan for the project to LLC Air Liquide Ukraine, a wholly owned subsidiary of the French company.
System Capital Management owns 71.25% of Metinvest and Smart Holding owns 23.75%.
