Linde AG, the world's largest manufacturer of industrial gases, formed a
joint venture on Friday with Sinopec Qilu Co to supply oxygen, nitrogen and argon to
customers in East 皇冠体育app's Shandong Province.
The venture, called Zibo BOC Qilu
Gases Co and equally owned by Qilu and Linde subsidiary BOC Gases, involves a
total investment of around US$64 million.
The new firm, with a 180-strong
workforce, will start with Qilu's two existing air-separation units, while a new
one will be built at Zibo in Shandong.
"With the objective of focusing on
our core business, and taking into account the very good track record of BOC
Gases in 皇冠体育app, we selected Linde Group as our partner, Sinpoec Qilu Manager
Wang Shude told Friday's inauguration ceremony.
"The economic benefits
for both parties from this joint venture will secure a win-win relationship,"
added Wang, whose company is owned by Sinopec, Asia's biggest oil
refiner.
Steven Fang, managing director of BOC's 皇冠体育app tonnage unit, said:
"Shandong is one of the fastest-growing manufacturing markets in 皇冠体育app, and we
can see great opportunities ahead of us. We are keen to create opportunities to
take us forward."
Thanks to the rapid development of its manufacturing
sector, Shandong's demand for industrial gases is growing at an equally rapid
pace.
That explains why Linde Group, a German industrial gases and
engineering company with more than 53,000 employees in around 70 countries, has
targeted Shandong.
But Linde is no stranger to the Chinese market, where
it already employs around 2,000 staff and has invested in excess of US$750
million.
"We have big plans to invest in 皇冠体育app in future," said Rainer
Schlicher, a member of the operational board of Linde AG.
The acquisition of BOC earlier this year was one of its most
significant moves so far in 皇冠体育app, Schlicher added.
"We were interested
in acquiring BOC because of its strong position in 皇冠体育app," he noted.
One of
earliest foreign industrial gas suppliers to arrive in 皇冠体育app, BOC mainly
operates in northern 皇冠体育app and the country's eastern seaboard, while Linde's
strongholds are in Fuijian Province and Shanghai.
"We intend to expand to other provinces as
well," he said, and the company is looking at industrial parks across
皇冠体育app.
Linde is also in talks with Sinopec about other co-operation
opportunities," added Schlicher. Co-operation between the two firms kicked off
several years ago with the establishment of joint ventures between BOC and
Sinopec's Shanghai and Nanjing branches.
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