Air Liquide and Severstal further strengthen their partnership with a new long-term contract

Paris, France, March 22, 2019

Air Liquide and PAO Severstal, a steel and mining company, have signed a new long-term contract for the supply of oxygen, nitrogen and argon in Cherepovets (Russia). Air Liquide will invest around 50 million euros in the construction of a state-of-the-art Air Separation Unit (ASU) which will improve the energy efficiency and the overall environmental footprint of the Severstal production process.

Air Liquide will design, construct and own a new ASU on the Severstal CherMK site in Cherepovets producing 2,000 tons of oxygen per day. This will bring the total production capacity of Air Liquide above 7,000 tons of oxygen per day on this site, making the Cherepovets one of the largest industrial gas production unit across the steel industry worldwide. The project will be operated by Air Liquide Severstal, a joint-venture established in 2005 between Air Liquide and Severstal.

The Air Liquide Engineering and Construction teams will bring their state-of-the-art technologies to build this large-scale ASU, which is planned to be operational by the end of 2020. The new ASU will enable improving significantly the energy efficiency and reducing CO2 emissions by 20.000 tons/year which corresponds to the yearly emissions of 7.500 cars. This performance will contribute to reach the Climate ambitions of the Air Liquide Group of reducing its carbon intensity by 30% between 2015 and 2025.

This new signature illustrates our strategy of development in key industrial basins. This is the third ASU installed and operated by Air Liquide in Cherepovets since 2007. With the recent renewal of our initial contract, it reflects the long-term partnership and mutual trust between Air Liquide and Severstal.

Guy Salzgeber, Executive Vice-President and member of the Air Liquide group’s Executive Committee supervising industrial activities in Europe, said:

“We are pleased to strengthen our long-term partnership with Severstal. The signature of this major contract and renewal of the initial one demonstrate trust and confidence in the ability to create value for our customers and deliver long-term performance which is key to ensure profitable growth. We are also committed to accompany our customers in the energy transition journey by promoting low carbon solutions for a sustainable industry.”  

Alexander Shevelev, General Director of Severstal Management, said:

“This contract is further demonstration of Severstal’s commitment to sustainable development, as we continue to reduce carbon emissions and improve energy efficiency at our production sites. We are pleased to work with Air Liquide, who shares our focus on environmental protection and takes a highly responsible attitude to ecological conservation. Throughout our long partnership, Air Liquide has demonstrated its ability to deliver high-quality products and innovative services to its customers, and I hope that our positive collaboration will develop further as we continue contributing to the environment protection along with achieving operational excellence together”.  

Offers gas and energy solutions that improve process efficiency and help achieve greater respect for the environment, mainly in the refining and natural gas, chemicals, metals and energy markets. In 2018, revenues were €5,685 million.

Air Liquide was established in Russia in 1989 and was primarily involved in  the sale of industrial gas production equipment. In 2005, OOO Air Liquide, the Russian subsidiary for production and sale of industrial gases was founded. Today, the company operates 15 industrial sites in key regions. More than 500 employees supply products and services to over 1,500  customers.

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