Air Products will construct and operate an over 200 tpd oxygen, nitrogen and argon liquefier and cylinder gases depot in Krasny Sulin in the Rostov region of Russia, the company said on Friday.
The region has a well-established manufacturing base, strong historic growth rate and promising development forecasts, Air Products said.
The total value of both investments is over $30 million, according to the company.
Both the liquefier and packaged gases depot are expected to be on-stream in early 2014.
"We are continually looking for opportunities that allow us to strengthen our position in growth regions, said Robert Mills, general manager for Russia and Commonwealth of Independent States (CIS) at Air Products.
Air Products is interested in viable commercial opportunities across Russia, including the Rostov region, as we firmly believe this geography has long-term growth potential, he continued.
The liquefier and depot will allow us to supply both liquid and packaged gases to the merchant market and support our onsite customers.
The new Air Products' liquefier and cylinder gases depot will allow the company to supply liquid and packaged gases to the metal, glass, food, chemical and refining industries, it said.
"We are pleased that the Rostov regional administration recognizes the need for industrial gases to support manufacturing and economic growth in the region, said Mills.
This is where Air Products - as an integrated gas supplier - can utilize our core technology and product strengths from other geographies to help develop the region's industrial gas market and meet the growing demand," he added.
Air Products' investments in the liquefier and packaged gases depot are to be implemented under the framework a collaboration agreement signed with the administration of the Rostov region in October 2010.
The agreement provides a cooperative and constructive basis for both parties to work together and develop collaborative activities.
"Air Products has demonstrated itself to be a reliable partner and shown a clear commitment to the Rostov region, said Vasily Golubev, the governor of Rostov Oblast.
By signing the memorandum - under which the company is implementing their investments - sends a significant message to other investors: Rostov Oblast welcomes large projects that can benefit from the huge potential possessed by the Don territories," Golubev added.
The investment in Rostov follows a previously announced agreement signed with Sibur Voronezhsintezkauchuk, a leading Russian petrochemicals company, in September 2010 for the construction and operation of an air separation unit (ASU) to support Sibur's manufacturing processes.
This ASU is expected to be on-stream by July 2012.