23 April 1998: Air Liquide America Corporation and Praxair, Inc. have agreed on the creation of a production joint venture at Praxair“s Pittsburg, California location, effective 1 May 1999.
Terms w…
23 April 1998: Air Liquide America Corporation and Praxair, Inc. have agreed on the creation of a production joint venture at Praxair“s Pittsburg, California location, effective 1 May 1999. Terms were not disclosed and the final agreement is expected to be signed by early summer. Air Liquide America began purchasing its liquid oxygen and liquid nitrogen requirements from Praxair on 1 April 1998, and will continue to do so until 1 May 1999. The companies are then expected to form a joint venture to own the existing facility in Pittsburg, which Praxair will operate. The joint venture also will invest in additional production capacity at the site. “The efficiencies and cost benefits to be achieved by both Air Liquide America and Praxair will allow each company to meet its long-term supply commitments for liquid oxygen, liquid nitrogen and liquid argon, as well as pipeline products,” said Patrick Verschelde, President and CEO, Air Liquide America. “This joint venture will provide improvement in production costs that will allow Praxair and Air Liquide to more reliably and competitively supply customers in Northern California,” said Paul J. Bilek, president of North American Industrial Gases, at Praxair. Air Liquide America said it will not be building its previously announced air separation unit at a site adjacent to the USS-POSCO Industries facility in Pittsburg. Air Liquide America is part of the Air Liquide Group, an international organisation specialising in industrial and medical gases as well as associated services. Present in over 60 countries, it employs over 27,000 people. Sales in 1996 were US$ 6.7 billion. The group supplies oxygen, nitrogen, hydrogen and many other gases for industries such as iron and steel, refining, chemicals, glass, electronics, pulp and paper, metallurgy, food, health care and space. Praxair, which produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings, reported 1997 sales of US$ 4.7 billion.