Kobe Steel, Ltd. Air Water Inc. Kobe Steel and Air Water to form joint ventures TOKYO, December 1, 2003 – Kobe Steel, Ltd. and Air Water Inc. have agreed to form two joint venture companies. One company will manufacture and supply cryogenic air separation units. The other will market industrial gas produced at Kobe Steel's Kakogawa Works for outside sale. 1. Joint engineering company for cryogenic air separation units Cryogenic air separation units cool air to nearly minus 200 degrees C. and liquefies it. The industrial gas is then separated into oxygen, nitrogen and argon, which are used in numerous fields including the steel, chemical and semiconductor industries. As a plant maker of cryogenic air separation units, Kobe Steel has over 70 years of experience. To date, it has supplied over 300 units, mainly medium to large size. Air Water, an industrial gas maker, is a user of air separation units. In addition, its plant business manufactures small and medium-size cryogenic air separation units. Air Water has installed 100 units at on-site plants. Combining the engineering of their cryogenic air separation unit businesses, Kobe Steel and Air Water will be able to build a stronger operating base through their complementary areas of expertise, while improving their technological and cost competitiveness. Outline of the New Company
Plans call for the company to begin operations from April 1, 2004.
Making effective use of the gas plants at its Kakogawa Works, Kobe Steel has been selling surplus industrial gases (argon, oxygen, nitrogen) and rare gases (krypton, xenon) mainly to wholesalers. The company aims to continue selling a stable volume of gases. In strengthening its industrial gas business, Air Water has been seeking new sources of industrial gases in western Japan. As their aims complement each other, the two companies decided to jointly sell industrial gases produced at Kakogawa. By jointly managing the new venture, the two companies intend to expand the external gas sales of the two companies and further strengthen their businesses.
Plans call for the company to begin operations from April 1, 2004. |