French Company Air Liquide to Build Russian Plant with Severstal

French industrial gasses company Air Liquide and Russian steel and mining company Severstal have signed a new long-term contract for the supply of oxygen, nitrogen and argon in Cherepovets, Russia, Gas World reported.

Air Liquide will invest around $55 million in the construction of a state-of-the-art Air Separation Unit (ASU), which will improve the energy efficiency and the overall environmental footprint of the Severstal production process, the two companies said.

Air Liquide will design, construct and own a new ASU on Severstal’s CherMK site in Cherepovets producing 2,000 tons of oxygen per day. This will bring the total production capacity of Air Liquide above 7,000 tons of oxygen per day on this site, making Cherepovets one of the largest industrial gas production unit across the steel industry worldwide. The project will be operated by Air Liquide Severstal, a joint-venture established in 2005 between Air Liquide and Severstal.

“We are pleased to strengthen our long-term partnership with Severstal. The signature of this major contract and renewal of the initial one demonstrate trust and confidence in the ability to create value for our customers and deliver a long-term performance which is key to ensure profitable growth. We are also committed to accompanying our customers in the energy transition journey by promoting low carbon solutions for a sustainable industry,” said Guy Salzgeber, Executive Vice-President and member of the Air Liquide group’s Executive Committee supervising industrial activities in Europe.   

“This contract is a further demonstration of Severstal’s commitment to sustainable development, as we continue to reduce carbon emissions and improve energy efficiency at our production sites. We are pleased to work with Air Liquide, who shares our focus on environmental protection and takes a highly responsible attitude to ecological conservation,” said Alexander Shevelev, General Director of Severstal Management.