Air Liquide and Severstal Extend Their Partnership With a New Long-term Contract in Major Oxygen Site in Continental Europe

7 June 2021

Air Liquide and PAO Severstal, one of the leading steel producers, have signed a new long-term contract for the supply of oxygen to the Severstal CherMK site in Russia. Air Liquide will invest around 60 million euros in the construction of a state-of-the-art Air Separation Unit (ASU) on the site, one of the largest oxygen sites in continental Europe, where it already owns three other ASUs. Thanks to enhanced energy efficiency, this new unit will improve the overall environmental footprint.

Air Liquide will design and build a new state-of-the-art ASU on the Severstal CherMK site in Cherepovets, one of the most competitive steel making sites worldwide. The new unit will produce 1,000 tons of oxygen per day. This is the fourth ASU installed by Air Liquide in Cherepovets.

Planned to be started up by the end of 2023, the unit will be owned and operated by Air Liquide Severstal, a joint venture established in 2005 between Air Liquide (75%) and Severstal (25%). It will bring the total production capacity on this site, one of the largest sites for Oxygen production in continental Europe, at above 8,000 tonnes of oxygen per day.

This new ASU is characterized by improved energy efficiency. In the framework of the agreement the two companies have also committed to further reduce the CO2 emissions arising from the oxygen production, in line with Air Liquide’s commitments to address the urgency of climate change and to act for a sustainable future.

Francois Jackow, Executive Vice President and a member of the Air Liquide Group’s Executive Committee supervising Europe Industries activities, said: “This new contract will further strengthen our long-term partnership with Severstal, which we have been regularly building since 2005. Through our know-how and innovative solutions, we will keep working with Severstal to lower the environmental footprint of this major industrial site of Cherepovets. As part of its objective to reach carbon neutrality by 2050, Air Liquide is committed to address the urgency of climate change and to act for a sustainable future”.

Alexander Shevelev, CEO of Severstal Management, said: “Severstal pays great attention to reducing its environmental impact, and we are committed to achieving the gradual decarbonization of our production processes. We have set ourselves the near-term target of reducing our greenhouse gas emissions intensity by 3% by 2023 compared to 2020 levels, and we fully intend to set new and ambitious goals. I am confident that our agreement with Air Liquide, a long-standing partner of Severstal and a leader in sustainable development, will contribute significantly towards the implementation of our environmental and climate strategy”.

Air Liquide in Russia
Air Liquide was established in Russia in 1989 and was primarily involved in the sale of industrial gas production equipment. In 2005, OOO Air Liquide, the Russian subsidiary for production and sale of industrial gases was founded. Today, the company operates 18 industrial sites in key regions. More than 700 employees supply products and services to over 1,700 customers.

A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 78 countries with approximately 64,500 employees and serves more than 3.8 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.

Air Liquide’s ambition is to be a leader in its industry, deliver long term performance and contribute to sustainability - with a strong commitment to climate change and energy transition at the heart of its strategy. The company’s customer-centric transformation strategy aims at profitable, regular and responsible growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization implemented by the Group worldwide. Through the commitment and inventiveness of its people, Air Liquide leverages energy and environment transition, changes in healthcare and digitization, and delivers greater value to all its stakeholders.

Air Liquide’s revenue amounted to more than 20 billion euros in 2020. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes

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Ksenia Amaryan
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