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
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
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
"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
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
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
This ASU is expected to be on-stream by July 2012.