Praxair Signs Long-Term Supply Agreement in Brazil
Praxair (NYSE: PX) has signed a long-term contract to supply industrial gases to a new steel mill being built near the Port of Pecém in an international free trade zone in the state of Ceara, located in the northeast region of Brazil. The mill will be operated by Companhia Siderúrgica do Pecém (CSP), a joint venture between Brazilian Vale and South Korean Dongkuk Steel and Posco Steel. Praxair will build, own and operate a 2,400 tons per day cryogenic plant that will produce gaseous and liquid oxygen, nitrogen and argon. The plant will enable CSP to produce an expected 3 million tons of steel slabs annually, which will largely be exported for further processing by CSP's Korean partners. The plant is expected to start up in 2016. "We are proud to have been chosen to play such a significant role in this project," said Domingos Bulus, president of Praxair South America. "Our state-of-the-art plant and world-class Praxair team will provide CSP with the gases it needs to deliver a steady supply of high-quality steel products." According to CSP, "Praxair's regional capabilities as a reliable on-site source of high-quality oxygen were critical to its selection for this phase that involves an annual production of 3 million tons of slabs. The confidence in this choice enables CSP to continue to develop the first integrated steel mill in northeastern Brazil with a strong base." The new plant will also serve merchant and packaged gas customers in a variety of sectors across the northern and northeastern regions of Brazil, including food and beverage, metal fabrication, healthcare and automotive. About Praxair Praxair, Inc., a Fortune 250 company with 2012 sales of $11 billion, is the largest industrial gases company in North and South America and one of the largest worldwide. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and many others. More information about Praxair, Inc. is available at www.praxair.com.
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