SMS signed a contract with POSCO
On September 15, 2011, Shunde Deli Messer (SMS in short) signed a contract with Shunde POSCO Coated Steel Co., Ltd. for the supply of nitrogen via pipeline as well as hydrogen via an on-site generator. It is expected that the supply will begin on July 1, 2012.   
Wholly owned by Korean POSCO, Shunde POSCO is the only manufacturer of electrical steel sheets in Guangdong Province. According to the plan of Shunde POSCO, it will invest in three phases in a production line of galvanized steel sheets for automobiles in Shunde New Industrial District. The designed total annual production volume of the first two phases will be 1 million tons and the first-phase production line will be put into operation in July, 2012. In order to meet the industrial gas demands by POSCO for its production, Shunde Deli Messer will invest 30 million USD for the first phase to construct a new air separation unit with a daily capacity of over 900 tons of gas products as oxygen, nitrogen and argon. The future version of the project is to supply industrial gases via pipeline to customers in the New Industrial District as well as bulk liquid to the customers in the surrounding areas.
Established in the autumn of last year, SMS is one of the latest investments of Messer in China and the 3rd production site in Guangdong Province. The contract with POSCO, which is the first gas supply contract of SMS, represents a kick-off of Messer's further involvement in the gas market in Pearl Delta Area.
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Jasmine Yan
Corporate Communications
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