Air Products and Takamul Investment Announce the Formation of a New Joint Venture in Oman

The joint venture will supply industrial gases to the new Special Economic Zone at Duqm (SEZAD)

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Dec 10, 2013, 02:30 ET

MUSCAT, Oman, Dec. 10, 2013 /PRNewswire/ -- Air Products (NYSE:APD), the leading global hydrogen provider, and Takamul Investment Company, a subsidiary of the Oman Oil Company, today announced they have signed a joint venture agreement to establish an integrated industrial gases venture, which will become a one-stop provider for a full range of industrial gases such as hydrogen, nitrogen and oxygen for all customers in the Special Economic Zone at Duqm (SEZAD), Oman.

The joint venture will support the economic development of the Special Economic Zone at Duqm and will enhance its competitiveness to attract further industrial investments. It will also aim to deliver the highest operational excellence by leveraging Air Products' world-class capabilities in large industrial gas plant design, pipeline infrastructure development and operational know-how, as well as Takamul's strong multi-utility infrastructure position in Duqm, via its Centralised Utility Company (CUC).

Commenting on the formation of the new joint venture, Thomas Wendahl, regional vice president of Air Products - Middle East, said, "This new joint venture will truly be of mutual benefit. It will help to strengthen Air Products' presence in Oman, enabling the growth of our business in the emerging industrial area of Duqm, while complementing Takamul's investment portfolio in Oman with the addition of a commercial stake in industrial gases."

Hilal Al Kharusi, Chairman of Takamul, added,"Following a thorough and extensive evaluation process to select Air Products as one of our strategic partners, I am delighted to be announcing our agreement today. There is a lot we can learn and benefit from partnering with international companies such as Air Products as we drive to bring reliable, high quality, centralized utilities to the SEZAD. With Air Products' proven track record in Oman and the Middle East, we will be working with them to provide innovative solutions for large scale industrial gases that will enable our customers to become more productive, energy efficient and sustainable."

Strategically located along the Gulf of Oman with a long coastline running along the Arabian Sea, Duqm has been targeted for development as a major maritime gateway for trade in crude oil from the Gulf, and as an important industrial and commercial hub. With a land area of 1,777 square kilometres and an 80-kilometre coastline, the Duqm SEZ will rank as the largest SEZ in the Middle East and North Africa region and one of the largest in the world. It will be administered, regulated and developed by the Duqm Special Economic Zone Authority, a financially and administratively independent government entity. Encompassing a sea port, city centre, industrial zone, tourism zone, logistics centre and an education and training zone, all supported by a multi-modal transport system connecting the SEZ to nearby regions, the development of the SEZ is expected to take place in three phases from now until 2025.

Notes to editors:

Air Products in the Middle East

Air Products has had a presence in the Middle East for more than 50 years, with offices in Oman, UAE, Saudi Arabia, Qatar and Bahrain. A provider of liquefied natural gas (LNG) cryogenic technology to Oman and the rest of the Gulf Co-operation Council (GCC), Air Products has built, owned, and operated several air separation units and hydrogen production plants throughout the Middle East region. It operates a helium and cylinder gas filling and distribution facility, as well as a specialty gases center in the Jebel Ali Free Zone, UAE.

About the companies

About Takamul Investment Company

Takamul is a subsidiary company of Oman Oil Company (OOC), a commercial venture of the Government of the Sultanate of Oman. The company was formed in 2008 to develop, promote and invest in green field industrial projects as well as in existing industrial companies to support Oman's thriving industrial sector. The company's key objective is to act as a catalyst in developing a sustainable downstream value chain to extend Oman's increasingly promising chemicals, metals, minerals and industrial service sectors. Takamul is establishing the Centralised Utilities Company (CUC), which will have exclusive rights to provide a range of utilities to the industrial area of the Special Economic Zone at Duqm (SEZAD), Oman. This will include electricity, steam, industrial gases, and water. The CUC is one of Takamul's first investments in industrial services. For more information visit www.takamul.com

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. It is recognized as one of the world's most innovative companies by both Thomson Reuters and Forbes magazine. With more than 20,000 employees in over 50 countries, Air Products supply effective 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 2013, Air Products had sales of $10.2 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, 2013.

SOURCE Air Products