French industrial gases company Air Liquide and Russian steel and mining company PAO Severstal have inked a new long-term contract for the supply of oxygen, nitrogen and argon in Cherepovets, Russia.
Under the deal, Air Liquide will commit about 50 million euros ($56.6 million) in the building of a modern Air Separation Unit (ASU), which will advance the energy efficiency and the overall environmental footprint of the Severstal production process.
The company will design, build and own a new ASU on the Severstal CherMK site in Cherepovets producing 2,000 tons of oxygen per day.
As a result, the total production capacity of Air Liquide will be above 7,000 tons of oxygen per day on this site. The project will be operated by a joint-venture set up in 2005 between Air Liquide and Severstal.