BOC opens deal in China

BOC Group, the industrial gas company, has embarked on its biggest investment in China, forming a joint venture with a leading petro-chemical company to take advantage of the growing need for industri…

BOC Group, the industrial gas company, has embarked on its biggest investment in China, forming a joint venture with a leading petro-chemical company to take advantage of the growing need for industrial gases in Nanjing. The joint venture, with Sinopec Yangzi Petrochemical (Sinopec YPC), has entered into long-term supply agreements with two industrial gas users, an existing plant owned by YPC Petrochemical and a new petrochemical complex under construction by a joint venture between BASF Corp and Sinopec YPC. BOC Group and its new partner will invest US$ 100 million by 2004 in the acquisition of three existing air separation assets formerly owned by Sinopec-YPC, and the construction of an additional air separation unit. The facility will produce some 2,600 tons per day of gaseous oxygen, over 2,000 tons per day of gaseous nitrogen and liquified product for the local merchant market. The investment folllows a 20-year involvement in the country, where BOC has about 26 joint ventures. Sinopec YPC is a subsidiary of Sinopec Corp, the Chinese industrial conglomerate. YPC is one of the five largest petrochemical bases in China, with 14 sets of petrochemical plants. BOC Process Gas Solutions, part of BOC Group, provides services to companies from oil refineries to food preparation.