Linde Signs Agreements to De-captivate Two Air Separation Units and Expand Supply of Industrial Gases to Tata Steel Limited in India
Rhea-AI Summary
Linde has signed agreements to acquire and operate two additional air separation units (ASUs) and expand industrial gas supply to Tata Steel in Odisha, India. The deal will more than double Linde's on-site capacity at Tata Steel's Kalinganagar facility, where it currently operates two plants. The new ASUs, expected to transfer in 2025, will supply oxygen, nitrogen, and argon to support Tata Steel's expansion project and serve the local merchant market. Linde has also secured renewable energy agreements to reduce Scope 2 emissions, aligning with its 2035 GHG reduction targets.
Positive
- More than doubles on-site production capacity through acquisition of two new ASUs
- Secures long-term supply agreement with major customer Tata Steel
- Expands market presence in growing Indian industrial gas cluster
- Additional revenue potential from local merchant market sales
Negative
- None.
News Market Reaction
On the day this news was published, LIN declined 0.62%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WOKING, UK / ACCESSWIRE / October 24, 2024 / Linde (NASDAQ:LIN) announced that it has signed agreements to de-captivate two air separation units (ASUs) and expand its existing supply of industrial gases to Tata Steel Limited in Odisha, India.
Linde already supplies industrial gases from its existing two on-site plants to Tata Steel's iron and steel making facility at the Kalinganagar Industrial Complex. It will now acquire two additional large ASUs, more than doubling its on-site capacity. Both ASUs are currently under construction and the transfer of the plants is expected to take place in 2025. Linde has also signed a long-term agreement with Tata Steel for the supply of oxygen, nitrogen and argon to support the customer's major capacity expansion project.
In addition to supplying Tata Steel, the new ASUs will meet demand for industrial gases from the local merchant market. Linde has signed agreements for the supply of renewable energy to the plant, reducing Scope 2 emissions in line with Linde's 2035 absolute GHG emissions reduction target.
"The new agreements to support Tata Steel's major capacity expansion build on our existing long-term relationship and further strengthen our position as a supplier of critical industrial gases to the steel industry," said Moloy Banerjee, President ASEAN & South Asia, Linde. "The project meets our strict investment criteria and will deliver sustainable growth for Linde, while enhancing our network density in one of India's most important and fast-growing industrial gas clusters."
About Linde
Linde is a leading global industrial gases and engineering company with 2023 sales of
The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
For more information about the company and its products and services, please visit linde.com
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SOURCE: Linde plc
View the original press release on accesswire.com
FAQ
When will Linde's new ASUs for Tata Steel in India become operational?
What gases will Linde (LIN) supply to Tata Steel's Kalinganagar facility?
How many ASUs will Linde operate at Tata Steel's Kalinganagar site after the agreement?
How is Linde (LIN) addressing emissions in the Tata Steel project?
