US-based Praxair inks pact to supply oxygen for Gerdau's steel plant in AP, India

15 May 2015

The US-based industrial gas manufacturer Praxair has signed a long-term contract with Brazilian metal producer Gerdau for the supply of gaseous oxygen to Gerdau’s blast furnace in Tadipatri, Andhra Pradesh. Gerdau is the largest long steel producer in the Americas and one of the leading suppliers of special long steel in the world.

Praxair will build, own and operate an 80 tonnes per day non-cryogenic vacuum-pressure-swing-adsorption plant, which is expected to start up in 2016. Gerdau’s steel facility has an installed capacity to produce 300,000 tonnes of special steel per year, primarily for automotive, defense, railways and related industries.

Anuj Sharma, managing director, Praxair India, commented, “We are very pleased to now be serving in India, one of Praxair’s long-term global customers. This agreement is an example of the strong global relationships that Praxair builds with its customers. We look forward to continuing to serve Gerdau’s needs and helping the company improve the productivity of their plant and grow their business in India.”

Sridhar Krishnamoorthy, managing director, Gerdau in India, said, “Reliable supply of industrial gas is critical in our operations. Praxair is a strong global supplier for us and we are confident in their ability to deliver the products and services we need.”

Gerdau SA had ventured into India in 2007 through a joint venture with a Kalyani Group company, Kalyani Steels Ltd (KSL), which owned an integrated alloy steel plant located at Tadipatri in Andhra Pradesh, with an installed capacity of 275,000 tons per annum. However, in March 2013, Gerdau has acquired the stake of Kalyani Group in their in steel manufacturing JV.