Praxair signs joint venture agreement to build its first carbon dioxide plant in China

Business Wire, Sept 19, 1996

BEIJING--(BUSINESS WIRE)--September 19, 1996--Praxair, Inc., the world's largest supplier of carbon dioxide, signed a joint venture contract today with the Beijing Chemical Engineering Experimental Plant (BCEEP), a subsidiary of Beijing Chemical Industry Group Company (BCIGC), to produce carbon dioxide in Beijing, China. Praxair holds a 60 percent share of the joint venture company.

The joint venture, Praxair-BCEEP Carbon Dioxide, Inc. is the U.S.-based company's first carbon dioxide plant in China. With a total investment of U.S.$8 million, it will be the largest carbon dioxide production facility in China, producing 32,000 tons of high-purity liquid carbon dioxide annually. The plant's output will be supplied to the beverage, food, medical, textile, metal forming and fabrication, and environmental protection industries in China.

Praxair President Edgar G. Hotard said, "Praxair's decision to establish this newest joint venture further demonstrates our commitment to China. It serves as an important part of the more than U.S.$200 million investment plan we announced in September 1995."

Praxair currently operates joint ventures in Beijing and Shanghai and has an agreement with the Sichuan Air Separation Plant Manufactory to design and build cryogenic air separation systems in China.

"In recent years, we have seen remarkable economic growth in China," Hotard added. "There is now a growing need for industrial gases, including food-grade carbon dioxide. Praxair will be there every step of the way assisting China to develop a strong industrial gases industry."

Praxair is the largest supplier of industrial gases in North and South America, and one of the largest worldwide, with annual sales of more than U.S.$4 billion. With the acquisition of Liquid Carbonic earlier this year, Praxair is now the world's largest supplier of carbon dioxide. The company is also a leading global producer of air separation supply systems and high-performance coatings. Elsewhere in Asia, Praxair has operations in India, Indonesia, Japan, Singapore, Thailand and South Korea.

CONTACT: Praxair, Inc.

Jennifer Cain, 203/837-2051

203/837-2454 Fax

or

Hill & Knowlton Asia Ltd.

Cherry Pu, 86-10-6512-2288 ext. 2307

86-10-6512-4381 Fax

or

Hill & Knowlton Asia Ltd.

Carol Yang, 86-10-6512-3638

86-10-6512-4381 Fax