LEHIGH VALLEY, Pa., July 24, 2019 /PRNewswire/ -- Air Products (APD), a world-leading industrial gases company, today announced it has recently completed the buyback of two air separation units (ASUs) from Shanxi Jinmei Huayu Coal Chemical Co. Ltd. (Jinmei Huayu), a subsidiary of China's coal mining conglomerate Shanxi Jincheng Anthracite Coal Mining Group. Air Products has also started supplying since the end of June oxygen, nitrogen and other industrial gases via pipeline under a long-term supply agreement to Jinmei Huayu's major coal-to-clean fuels project in Jincheng City, Shanxi Province, China.
Air Products' latest asset buyback and long-term gas supply for Jinmei Huayu mark another important milestone in Air Products' gasification strategy and continued support for the development of China's clean energy industry.
Air Products supplied two ASUs—with a total capacity of over 4,000 tons per day—for Jinmei Huayu's Phase One energy project in Jincheng, which uses coal to produce one million tons of clean fuels annually. The two companies then actively explored further cooperation opportunities and later signed an agreement for Air Products to buy back the two ASUs for approximately $100 million and provide Jinmei Huayu with long-term, safe and reliable industrial gas supply.
Air Products Executive Vice President Dr. Samir Serhan said, "We are very pleased to have successfully completed the ASU buyback and provide our safe and reliable industrial gas supply to Jinmei Huayu for its significant coal-to-clean energy project. We truly appreciate our customer's trust in Air Products' world-class capabilities and look forward to further deepening our cooperation with one of China's leading energy groups on coal gasification."
Jinmei Huayu General Manager Niu Hongkuan said, "Jinmei Huayu and Air Products share a common vision for a better world, which has brought the two companies together. Air Products' experience and leading position in technology, talents, safety management and many other areas are crucial to the success of this important project, which will serve as the foundation for our broader and deeper cooperation in the future."
Leveraging its state-of-the-art large ASUs, leading gasification technologies and equipment, and safe and reliable gas supply, Air Products has been investing in high-quality and strategic coal gasification projects in China to support the country's ongoing transformation and upgrade of the coal chemical industry that targets products with higher added-value and sustainability. The latest project follows the company's major investment with Lu'An in Changzhi, Shanxi Province.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 75 years. The company provides industrial gases and related equipment to dozens of industries, including refining, chemical, metals, electronics, manufacturing, 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 2018 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of about $50 billion. Approximately 16,000 passionate, talented and committed employees from diverse 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 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, 2018.
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