The Linde Group has secured a long-term contract with Ningbo Wanhua Polyurethane, China's fastest growing polyurethane company to supply oxygen and nitrogen from 2010 onwards. Wanhua is the only domestic company that owns the technology and expertise for MDI (feedstock for the production of polyurethane). China is quickly becoming one of the key MDI markets, following North America and Europe.
Linde Gas Ningbo, a wholly-owned company of The Linde Group, will build two sets of air separation units and a new 30-kilometer long pipeline infrastructure. The plant will supply gases to Wanhua and Ningbo Steel. It will also co-produce 800 tons per day (tpd) of liquid nitrogen, oxygen and argon for the merchant market, as well as krypton and xenon rare gases. Total investment outlay is estimated at approximately US$125 mln, making it the single largest investment in Linde's history in China. Once the new plant is on-stream in 2010, Linde Gas Ningbo will form the largest air gas cluster in China with a total capacity of 8,000 tpd oxygen and nitrogen and 70 km network of pipelines. By 2012, Linde Gas Ningbo's production capacity will be capable of supplying to multiple tonnage customers in the area.