Air Products Signs Investment Cooperation Agreement with Yankuang Group for $3.5 Billion Coal-to-Syngas Production Facility in China

LEHIGH VALLEY, Pa., Nov. 9, 2017 /PRNewswire/ -- Today, in the presence of Donald J. Trump, President of the United States of America, and Xi Jinping, President of the People's Republic of China, Seifi Ghasemi, Air Products' (NYSE:APD) Chairman, President and Chief Executive Officer, and Li Xiyong, Chairman of Yankuang Group Co., Ltd., signed an agreement for a $3.5 billion coal-to-syngas production facility to be built in Yulin City, Shaanxi Province, China. The agreement was signed in the Great Hall of the People as part of the Trade Mission to China led by the U.S. Department of Commerce.

Under the agreement, Air Products and Shaanxi Future Energy Group Co., Ltd. ("SFEC"), a subsidiary of Yankuang Group, intend to form an Air Products majority-controlled joint venture company which would build, own and operate an air separation, gasification and syngas clean-up system to supply the SFEC site. The air separation units are expected to produce approximately 40,000 tons-per-day (TPD) of oxygen to support the production of about 2.5 million nm3/hour of syngas. SFEC would supply coal, steam and power and receive syngas under a long-term, onsite contract.

Air Products currently supplies SFEC's Phase 1 project in Yulin with 12,000 TPD of oxygen. The addition of Phase 2 would make this complex one of the largest coal to fuel and chemicals facilities in China, with SFEC Phase 2 producing four million tons-per-year of liquid fuels and downstream chemicals.

The parties are committed to finalizing the agreements as soon as possible, with the overall project expected onstream in 2021.

Ghasemi said, "Air Products is delighted to announce this significant expansion of our already strong relationship with one of China's largest energy companies. This new agreement confirms Yankuang's trust in us, built on the supply reliability we have delivered for their Phase 1 project. It is another excellent example of Air Products' strategy to grow profitably by deploying capital into world-scale industrial gas projects."

Li said, "We look forward to further extending our excellent partnership with Air Products, leveraging their technology, reliability and expertise to enable us to produce even more high-quality fuel and chemical products that drive growth and support sustainable development."

About Yankuang Group Co., Ltd.
Yankuang Group Co., Ltd. is an extra-large State-Owned-Enterprise (SOE) mainly engaged in coal mining and sales, coal chemical industry, power generation and aluminum production and machinery manufacturing. The mining business commenced development in 1966, and Yanzhou Coal Mining Bureau was established in 1976. It was restructured into a sole State-owned company in 1996 and further developed into Yankuang Group Co., Ltd. in 1999. Now Yankuang Group is the largest coal exporter and producer integrated with coal further-processing in Eastern China, and one of the three chemical industry bases in Shandong Province.

About Air Products in China
Air Products was one of the first multinational industrial gas companies to enter the China market when it set up its first plant in Shenzhen in 1987. Following 30 years of continuous
growth and investment, it has today around 2,500 employees, over 60 entities and more than 130 production facilities in the country, and continues to represent a key growth focus for Air Products. Most recently, the company announced a signed agreement to form a $1.3 billion joint venture, significantly expanding its scope of supply serving Lu'An Mining (Group) Co., Ltd.'s syngas-to-liquids production in Changzhi City, Shanxi Province, China.

About Air Products 
Air Products (NYSE:APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment.

The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of about $35 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com.

NOTE: This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about expected outcomes of the Company's investments. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date this release is furnished. Actual performance and financial results may differ materially from expectations reflected in the forward-looking statements because of many factors not anticipated by management, including, without limitation, the Company and the JV's ability to obtain required operating and safety permits and other regulatory approvals; regional economic conditions; political risks, including the risks of unanticipated government actions; acts of war or terrorism; future financial and operating performance of the JV's customer; unanticipated cancellation or postponement of the project; the joint venture's ability to complete the project and operate the facility; demand for coal to fuel and chemicals products; the impact of changes in environmental, tax or other legislation, accounting treatments, economic sanctions and regulatory activities; and other risk factors described in the Company's Form 10-K for its fiscal year ended September 30, 2016. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any change in the Company's assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.

SOURCE Air Products

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