Linde to build largest air separation plant in Indonesia
PT. Linde Indonesia, a member of The Linde Group, announced that it had entered into a long term industrial gases supply scheme agreement with PT. KRAKATAU POSCO (PT.KP).
PT. KRAKATAU POSCO, a joint venture between POSCO and Krakatau Steel, is building a three million tonnes per annum (mtpa) steelworks in the first phase in the Cilegon area, located about 100 km west of Jakarta. PT.KP's new plant will be the first integrated steelworks in Southeast Asia and is targeted to be onstream by the end of 2013.
To support the gases requirements of PT.KP’s new steel plant, Linde will invest about IDR 1 trillion (about EUR 88 million) to install a new air separation plant at Cilegon which is capable of producing approximately 2,000 tons per day (tpd) of oxygen. In addition to meeting the 1,680 tpd oxygen requirement of PT.KP’s new steelworks, Linde’s new plant, which will be commissioned by October 2013, will also produce liquid products to meet the growing demand for industrial gases in West Java.
Mr Sanjiv Lamba, Member of the Executive Board of Linde AG, and Regional Business Unit Head for Linde South & East Asia, said, "The Linde Group is keen to expand our business in Indonesia, one of the fastest growing economies in this region. Our decision to invest and build what will be Indonesia’s largest air separation plant, and also Linde’s largest investment in Indonesia to date, demonstrates our continued commitment to support our valuable customer PT.KP in its growth plans, and also meet future demand and market opportunities going forward," Mr Lamba added.
Mr Darren Webster, President Director of PT. Linde Indonesia said, "The signing of this long term supply scheme contract is a major milestone for Linde in Indonesia. Our new air separation plant will produce more than 3,000 tpd of oxygen, nitrogen and argon, and will enable us to significantly increase our production capacity and enhance our ability to serve the fast growing West Java area," Mr Webster noted.
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