Air Products Acquires ASU and Integrated Liquefier in China

LEHIGH VALLEY, Pa., Sept. 12, 2012 /PRNewswire/ -- Air Products (NYSE: APD) today announced it has acquired an air separation unit (ASU) and integrated gases liquefier in Guiyang, China from Guizhou Kaiyang Chemical Co., Ltd.  The ASU will produce approximately 2,000 tons per day (TPD) of gaseous oxygen and nitrogen to be supplied to Guizhou Kaiyang Chemical's coal to ammonia facility under long-term contract.  Liquid product will be sold predominantly to the region's industries on the merchant market, with some also being sold to Guizhou Kaiyang Chemical.  The Air Products owned ASU and liquefier are to be onstream in October 2012.

"This is the second contract Air Products has entered into with a subsidiary of the Yankuang Group.  There are additional growth and expansion opportunities at this location for us.  We look forward to strengthening the relationship with Yankuang in working with and supplying industrial gases to Guizhou Kaiyang Chemical.  We are also pleased to be acquiring the liquefier for merchant supply," said Steve Jones, Air Products' China president. Jones, a member of the company's Corporate Executive Committee relocated to Shanghai approximately one year ago as part of Air Products' corporate strategy to support significant growth opportunities and accelerate the company's development in emerging markets.

"The reliable supply of large quantities of industrial gases provided by Air Products is important to the success of our growing production facility.  We look forward to working together to the mutual benefit of both our companies," said Mr. Wang Xin, chairman of YK Group.

Air Products is also working with another Yankuang Group member, Shaanxi Future Energy Chemical Co., Ltd., in Yulin, Shaanxi Province.  Air Products is constructing and will own and operate the largest on-site ASU order ever awarded to an industrial gas company. The facility includes multiple ASU trains and will produce 12,000 TPD of oxygen and significant tonnage volumes of nitrogen and compressed dry air for Shaanxi's coal chemical plant starting in 2014.

Guizhou Kaiyang Chemical is jointly-owned by the Yankuang Group, a Shandong provincial state-owned enterprise and one of the four largest coal mining companies in China, and the Guizhou Kailin Group, one of China's leading phosphate mining companies and producers of ammonia phosphate for use as a fertilizer.

Today's announcement with Guizhou Kaiyang Chemical is the second China tonnage gases market announcement made by Air Products this month.  On Sept. 4, Air Products announced it will build, own and operate an ASU and integrated gas liquefier in Hebei Province, China to supply Cangzhou Zhengyuan Fertilizer Co., Ltd.  The ASU will produce approximately 2,000 TPD of gaseous oxygen for Zhengyuan's gasifier operation as part of its fertilizer plant in Hebei, and the liquefier will produce liquid product for the region's merchant gases market beginning in 2014.

Air Products has been operating in China since 1987 and was one of the first multinational industrial gas corporations to invest in the country. With over 40 operating entities, 50 production facilities and 2,200 employees, the company has already established a strong market position in China and serves a broad range of industries.

About Air Products

Air Products (NYSE:APD) provides atmospheric, process and specialty gases; performance materials; equipment; and technology. For over 70 years, the company has enabled customers to become more productive, energy efficient and sustainable. More than 20,000 employees in over 50 countries supply innovative solutions to the energy, environment and emerging markets. These include semiconductor materials, refinery hydrogen, coal gasification, natural gas liquefaction, and advanced coatings and adhesives. In fiscal 2011, Air Products had sales of approximately $10 billion. For more information, visit www.airproducts.com.

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2011.

SOURCE Air Products

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