July 25, 2008

Messer to set up ASU at Salzgitter Flachstahl

Industrial gas specialist Messer announced that it is constructing a production plant at Salzgitter AG for approx EUR 50 million, thereby exceeding the company’s own expectations for its return to the domestic German market.

The Messer Group has signed a contract with Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG to construct and operate an air separation plant. This contract has a validity period of 15 years. The industrial gas specialist will invest around EUR 50 million in the production plant for the industrial gases oxygen, nitrogen and argon.

The air separation plant on the site of Salzgitter AG will supply more than 30,000 standard cubic meters of oxygen and optionally 40,000 standard cubic meters of nitrogen to the steelworks in gaseous form. Messer will also produce oxygen, nitrogen and argon in liquid form to cater for the local market. Salzgitter Flachstahl GmbH plans to expand its crude steel production at its location in Salzgitter. At the same time production of electric steel at the location of the subsidiary Peiner Träger GmbH in Peine will also be increased. More technical oxygen will be required to guarantee the increased production volume, and Messer will cover this need by building its air separation plant in Salzgitter. The site in Peine which is approx. 30 kilometres away will also be supplied with oxygen from Salzgitter over a new pipeline.

Mr Stefan Messer explained that “The partnership with Salzgitter AG opens up totally new potential for our activities in Germany. We are certain that we will be able to gain the trust of our partner not only on account of our technical concept, but also through our dynamic plans for our return to the German market. After a four year absence from our domestic market the operational start-ups of our air separators have put us in a position to establish ourselves as a supplier of industrial gases again in the west, north and east of Germany.”