Air Products today announced that it has signed a long-term contract to supply oxygen, nitrogen and argon to Arcelormittal Belgium, a subsidiary of Arcelormittal, at its steel mill in Gent, Belgium.

As part of the agreement, Air Products will build, own, operate and maintain a third on-site air separation unit (ASU) at the Gent site to supply Arcelormittal with its industrial gases requirements. Scheduled to come onstream in 2012, the ASU will have a total production capacity of approximately 2.000 tons per day (TPD), bringing extra liquefied industrial gases capacity for supply to the European market.

"Delivering growth and productivity for ourselves and our customers is an important part of our strategy," said Howard Castle-Smith, vice president of Tonnage Gases, Air Products Europe and Middle East. "Air Products has been supplying Arcelormittal at its Gent facility, which is originally named Sidmar, for more than 40 years, and we are delighted to support their continued growth in steel production. This long-term contract demonstrates that our leading technologies and cost-effective mode of supply offer the right solutions for our customers' increasing requirements."

"This investment is based on the need of industrial gases, first of all to replace the capacity of ASU1, which will be closed in Terneuzen, and gives Arcelormittal Gent increased flexibility volume - focusing on iron ore or scrap route - and the possibility to grow. The two existing Air Products air separation units at the Gent site will continue supplying Arcelormittal with their current oxygen, nitrogen and argon requirements at their existing operations," said Marc Vereecke, chief executive officer at Arcelormittal Gent.