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Air Products' JV Signs Major Supply Contract in India With Steel Authority of India Limited (SAIL)

Posted on: Wednesday, 5 July 2006, 12:00 CDT

LEHIGH VALLEY, Pa., July 5 /PRNewswire-FirstCall/ -- Air Products today announced that its joint venture in India, INOX Air Products Limited, has signed a long-term contract with Steel Authority of India Limited (SAIL), India's largest steel producer for the supply of oxygen, nitrogen and argon to SAIL's steel works in Bokaro, Eastern India.

INOX Air Products will build, own and operate a state-of-the-art cryogenic air separation facility at SAIL's Bokaro steel works. The facility is scheduled to come on-stream in early 2008.

"We are happy to be associated with INOX Air Products as a long-term partner and are confident that INOX Air Products can meet SAIL's expectations for the supply of our industrial gas requirements for the expansion of our Bokaro production facilities," said Mr. D. P. Sharma - executive director - Projects, SAIL-Bokaro Steel Plant.

"India represents a significant growth opportunity for Air Products in Asia and steel is a key growth driver," said Bob Dixon, president, Air Products Asia. "INOX Air Products' supply agreement with SAIL demonstrates the value of our capabilities for a leading steel producer. It also reflects the quickened pace of industrial manufacturing and infrastructure investment in India, which will further increase the market for industrial gases."

India's steel production capacity is approximately 35 million metric tons per year (mmtpy). This number is expected to increase to 60 to 70 mmtpy within the 2010-2012 timeframe. SAIL is the largest steel producer in India with a hot metal capacity of 13 mmtpy.

"This new facility for SAIL in Eastern India complements INOX Air Products' existing strong presence throughout India and our leading merchant supplier position, and will better position us to meet our customers' existing and future requirements," said Pavan K. Jain, managing director of INOX Air Products.

***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

Air Products

CONTACT: Media Inquiries: Asia, Jessica Cheng, (852) 28630585,chengjs@airproducts.com, or U.S., Art George, +1-610-481-1340,georgeaf@airproducts.com; or Investor Inquiries: Phil Sproger,+1-610-481-7461, sprogepc@airproducts.com, all of Air Products

Web site: http://www.airproducts.com/

Source: PRNewswire-FirstCall

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