Shanghai /PRNewswire/ - Air Products (NYSE: APD) today announced it has signed a long-term gas supply contract with Shandong Binhua New Material Co., Ltd. (Binhua), a subsidiary of Befar Group which is a leading petroleum and chemical enterprise in China, to support Binhua's flagship chemical project located in the Beihai Economic Development Zone of Binzhou City, Shandong Province, China.
Under the contract, Air Products will build, own and operate several onsite gas production facilities in the Binzhou Port-centered Chemical Industry Park in phases, including an energy-efficient air separation unit (ASU), to meet Binhua's gaseous oxygen and nitrogen demand. The ASU will also provide liquid products to other customers in the park and the growing merchant market in Shandong Province. All facilities will be fully operational in 2022.
"Befar Group is one of the most influential chemical companies in China. We are honored by the trust our customer has placed in Air Products to support their important project. We look forward to deepening the cooperation with them as they accelerate their expansion plans and business transformation," said Saw Choon Seong, China president at Air Products. "We have already established a strong presence in the strategic industry clusters in Shandong Province. Our latest investment will further strengthen our integrated gases supply position to support the rapid development of this world-class park in Binzhou as well as the transformation and upgrading of the chemical industry under China's 14th Five-Year Plan."
"We are very pleased to work with such a world-leading industrial gases company. The successful signing of this contract gives us great confidence that our cooperation with Air Products will continue to expand in the long run," commented Jiang Sen, President of Befar Group.
Taking advantage of Beihai Economic Development Zone's industrial development, geographical location and natural resources, the high-end Binzhou Port-centered Chemical Industry Park has already attracted several major chemical companies, including Binhua. Binhua's RMB 51.5 billion yuan (USD 7.5 billion) two-phase propane and butane integrated utilization project involves world-leading technologies and green production and will comply with China's latest environmental regulations. Air Products' highly energy-efficient facilities will supply reliable gases to this project for producing a variety of chemical materials for use in high-growth new materials and new energy products.
Air Products has been operating in China since 1987 and was one of the first multinational industrial gases corporations to invest in the country. With nearly 90 operating entities, over 200 production facilities and more than 4,000 employees, the company has already established a strong market position across China and serves a broad range of industries. In Shandong Province, Air Products has built a strong presence and supply network since its first investment in 1995, comprising several operating entities, production facilities, hydrogen fueling stations and engineering design capability.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale carbon-free hydrogen projects supporting global transportation and the energy transition.
The Company had fiscal 2020 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of about $60 billion. More than 19,000 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 or follow us on LinkedIn, Twitter, Facebook or Instagram.
About Befar Group
Befar Group is a Top 500 Chinese Petroleum and Chemical Enterprises. Founded in 1968, and put into production in 1970, through fifty years' entrepreneurship, innovation and breakthroughs, Befar Group has grown into a comprehensive chemical enterprise with outstanding main industry and complete industrial chain which covers salt chemical, petrochemical, fine chemical, thermal power, port warehousing and financing etc. Befar Group's products have been sold to more than 100 countries and regions in the world.
In 2019, the total assets of Befar Group accumulated to 20.596 billion RMB, sales revenue reached 31.850 billion RMB, profits and taxes reached 2.61 billion RMB, total profits reached 0.747 billion RMB.
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, 2020.