HKO TO BUILD NEW AIR SEPARATION PLANT TO SUPPORT GIS EXPANSION

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HKO TO BUILD NEW AIR SEPARATION PLANT TO SUPPORT GIS EXPANSION
23 September 2006 - BOC Gases

Hong Kong Oxygen, a joint venture between BOC and Air Liquide, will construct a new air separation unit to supply Guangzhou Iron & Steel’s steel making operations in the Pearl River region of southern China.

HKO and GIS will construct the new 8000m3/h ASU through their joint venture company, GKIG. GIS is a major steel producer in China, with an annual production capacity of 3.5 million tons.

HKO and GIS have worked together since the early 1990s as a joint venture partnership to supply oxygen via pipeline to two steel sites and supply bulk and compressed gases to the merchant market within the Pearl River Delta.

"HKO is making this significant investment to support GIS’s expansion, which reflects the strong demand for steel in China," said Jim Le of HKO. "The steel industry is one of the fastest-growing industries in China," he added. "Ninety percent of the capacity growth for steel worldwide has taken place in China in the past three years, and we are working hard to help our steel customers in China meet their growth expectations."

HKO Group (Hong Kong Oxygen) is jointly owned by The BOC Group and L’Air Liquide. The company was formed in 1959 to serve the Hong Kong market but since the early 1990s has been developing a leading market position within the increasingly important South China region.

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About: BOC Gases
Through its PGS line of business, BOC supplies gas and related solutions to the chemicals, petroleum, glass, water services, electronic packaging, fibre optics, hydrogen energy, metals and food industries. BOC helps meet customer needs in a variety of ways, from the supply of a single gas or application through to designing, constructing and operating fully integrated gas and utilities schemes.

The BOC Group, which serves two million customers in more than 50 countries, is one of the largest and most global of the world's leading gases companies. It employs some 44,500 people worldwide and had annual sales of over £4.3 billion in 2003. Further information about The BOC Group may be obtained on the Internet at www.boc.com

The BOC Group has an international portfolio of companies grouped for management control and reporting into three lines of business: Process Gas Solutions, Industrial and Special Products, and BOC Edwards. It also has a specialist logistics business, Gist.

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