Linde India has entered into a plant sale agreement with Tata Steel to buy two 1,800 tpd (tonnes per day) air separation units (ASUs) from the manufacturer’s Kalinganagar Phase 2 expansion project.
In a stock exchange filing, Linde said, “…please be informed that the company has entered into the Plant Sale Agreement with Tata Steel Limited for acquiring their industrial gas supply assets – 2×1800 tpd ASUs at their Kalinganagar Phase 2 expansion project.”
The acquisition saw shares of Linde India surge as much as 6.09% to hit an intraday high of Rs 7,641.60 (US$90.72) per share today (September 5th).
This follows Tata Steel’s September 2023 announcement of Linde India as the winning bidder to own, operate and maintain the gas-supply infrastructure at Tata Steel’s Kalinganagar plant. Under this agreement, Linde India will manage the supply of industrial gases to the steel plant for a period of 20 years.
This decision followed a competitive bidding process aimed at finding a reliable partner to manage the plant’s ASUs. These ASUs are crucial for producing industrial gases such as oxygen, nitrogen and argon, which are essential for steel manufacturing processes, including oxygen steelmaking.
This contract supports the Kalinganagar Phase 2 expansion, which aims to increase the plant’s capacity from three mtpa to eight mtpa.
Tata Steel Kalinganagar is the first Indian plant to be included in the Global Lighthouse Network of the World Economic Forum for its leadership in applying Industry 4.0 technologies.
The Global Lighthouse Network recognises manufacturing plants and industrial hubs worldwide that demonstrate leadership in applying Industry 4.0 technologies to achieve improvements in efficiency, productivity and environmental sustainability.
Industry 4.0 technologies include advanced digital tools like artificial intelligence (AI), the Internet of Things (IoT), robotics, big data analytics and machine learning, which collectively enhance automation, connectivity and real-time data processing in manufacturing.
Besides Tata Steel Kalinganagar, other plants in the network include BMW’s plant in Regensburg, Germany, for its use of AI to enhance production; Procter & Gamble’s facility in Rakona, Czech Republic, for its smart automation; and Foxconn’s factory in Shenzhen, China, which uses IoT and data analytics to optimise production.
India is the world’s second-largest producer of steel, with a production of approximately 143.6 million tonnes of crude steel in FY 2024 (India Brand Equity Foundation).
There are over 100 air separation units (ASUs) dedicated to industrial purposes in India, with a major portion directly supporting the steel industry.
