Praxair Enters into Industrial Gas Joint Venture with KuibyshevAzot in Central Russia
DANBURY, Conn. & MOSCOW--(BUSINESS WIRE)-- Praxair, Inc. (NYS: PX) has entered into a definitive agreement to form a joint venture with OJSC KuibyshevAzot, in central Russia's Samara region, to produce and sell industrial gases. The joint venture will produce on-site oxygen, nitrogen and compressed dry air for KuibyshevAzot's expanding caprolactam, fertilizer and ammonia production, as well as liquid oxygen, nitrogen and argon for sale to customers in the Volga region.
Praxair and KuibyshevAzot will construct a new, energy-efficient air separation unit that will produce 1,400 tons per day of oxygen, nitrogen and argon and is scheduled to start-up mid-2016. The joint venture will also own and operate KuibyshevAzot's existing air separation unit, which produces 2,000 tons per day of oxygen, nitrogen and argon. The merchant liquid supply will support the surrounding industrial region, including energy, automotive and other manufacturing customers. This is Praxair's fifth on-site project in Russia and third in the Volga region.
"Praxair is excited to work with such an experienced and responsible company to supply industrial gases to a key market in central Russia," said Todd Skare, president of Praxair Europe. "Our modernization and investment program with KuibyshevAzot will bring significant energy efficiency and cost savings to the company, while increasing the supply of liquefied industrial gases to the growing demand from smaller regional customers."
"Cooperation with Praxair, one of the worldwide industrial gas production leaders, will enable further modernization, production efficiency growth and the long-term competitiveness of our enterprise," said Victor Gerasimenko, general director of KuibyshevAzot. "Construction of the new ASU is coupled with other major projects of our investment program and is necessary for supplying nitrogen to growing production needs."
Praxair, Inc. is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2012 sales of $11 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information about Praxair, Inc. is available at www.praxair.com and at www.praxair.ru.
OJSC KuibyshevAzot, located in Togliatti, Samara, is one of the largest companies in the Russian chemical industry, with business operations in two primary areas of production - caprolactam and derivative products (PA-6, high tenacity yarns, cord fabric and engineering plastics), and production of ammonia and nitrogen fertilizers. As one of the top 10 largest global manufacturers of caprolactam and polyamide, KuibyshevAzot has been consistently investing in caprolactam processing projects that increase production volume and provide products with higher value add to end users. The company had 2012 sales of RUB 28.4 billion ($912.3 million USD) and employs nearly 5,000 people. More information about KuibyshevAzot is available at www.kuazot.ru.
KEYWORDS: United States Europe North America Connecticut Russia
The article Praxair Enters into Industrial Gas Joint Venture with KuibyshevAzot in Central Russia originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.