The Linde Group has secured a contract with Sinopec Sichuan Vinylon Works (SVW) to jointly build gas plants and produce industrial gases for the long-term supply to SVW's chemical complex. This collaboration will result in an initial investment of approximately EUR 50 mln. This partnership will establish a 50:50 joint venture between Linde Gas (Hong Kong) Limited and SVW in Chongqing Chemical Industrial Park (CCIP) by June 2009. SVW in Chongqing, is the only gas-based chemical producer with Sinopec umbrella, and is currently expanding its vinyl acetate monomer (VAM) production capabilities. The joint venture will extend Linde Group's inroads in China while making possible SVW's VAM expansion project.
In the first phase of development under this Linde-SVW partnership, a new air separation plant with a capacity of 1,500 tons per day of oxygen will be constructed to produce and supply gases by 2011 to SVW's new 300,000 tpa VAM plant. This air separation plant will be built and delivered by Linde's Engineering Division. In the long-term, the joint venture is intended to expand the capacities of air gases and also construct synthetic gas (HyCO) plants to meet the overall gases demand by SVW and its associated companies.