Air Liquide has confirmed a €60 million ($67m) investment to support the growth of Wanhua Chemical Group’s Yantai operations in Shandong Province, China.
The investment will see the construction of a new air separation unit (ASU) to provide vital oxygen, nitrogen and argon to Wanhua’s expanding chemical production facility.
Expected to start operations in 2026, the new ASU will have a production capacity exceeding 2,000 tonnes per day.
In addition to supplying Wanhua, the unit will help meet growing demand for industrial gases in the surrounding region, particularly from industries like electronics and energy.
Nicolas Poirot, President and CEO of Air Liquide China, stressed the strategic importance of this move, stating, “This new investment strengthens our long-term partnership with Wanhua and our commitment to supporting the growth of key industries in China. It also reflects our dedication to contributing to a more sustainable and decarbonised future.”
Wanhua Chemical Group is a leading player in the chemicals industry, specialising in products and solutions for sectors such as polyurethanes, petrochemicals and fine chemicals.
The company’s site in Yantai has been steadily expanding in recent years to meet growing domestic and international demand. Air Liquide’s investment will ensure Wanhua has a stable supply of essential industrial gases to support this continued growth.
“Our partnership with Air Liquide is built on mutual trust and the shared goal of enabling sustainable development,” said a representative from Wanhua Chemical Group. “Their expertise in industrial gas production and supply is a key factor in supporting our long-term expansion plans.”
China’s chemical production China is the world’s largest producer of chemicals, accounting for over 40% of global chemical production. The industry requires a vast amount of industrial gases, including oxygen, nitrogen, argon and hydrogen, for processes such as refining, petrochemicals and the production of polymers. Estimates suggest that industrial gas consumption in China’s chemical sector amounts to millions of tonnes annually, driven by the need for efficient production, decarbonisation efforts, and expansion into high-tech chemical processes.
This is not the first time Air Liquide and Wanhua have collaborated. In 2020, the companies entered into a major supply agreement that included the installation of ASUs and supply of various industrial gases.
Poirot added, “This new ASU will not only support Wanhua’s growth, but it will also enable us to serve the broader industrial market in the region, especially high-growth sectors such as electronics, which are key to China’s long-term economic goals.”
China remains a critical market for Air Liquide, which has been operating in the country for over 30 years. The company has been steadily expanding its footprint in China to meet the rising demand for industrial gases across various industries, from electronics and automotive to chemicals and healthcare.
In 2021, the company announced an investment of €70 million ($78m) to build a state-of-the-art ASU in Wuhan. Air Liquide has also been involved in several decarbonisation projects across China, such as the construction of hydrogen refuelling stations for cleaner mobility, supporting China’s target to achieve carbon neutrality by 2060.
In 2020, Air Liquide also entered into a long-term agreement with the Chinese steel industry, building multiple ASUs to supply gases like oxygen and nitrogen.
