Issue Date: September 18, 2017
Air Products invests in Chinese syngas project
Air Products will raise by $500 million its investment in a joint venture with Lu’An Mining in China’s northern province of Shanxi. Air Products had already committed $300 million to the venture by agreeing to build four air separation units at the site. With its investment at the site growing to $800 million, Air Products will get a 60% stake in the venture, in which it will also be responsible for the production of syngas. Shanxi is one of China’s main coal mining provinces. The venture, Lu’An Clean Energy, will use syngas generated by gasifying coal supplied by Lu’An Mining to produce chemicals and liquid fuels. Air Products has been eager to invest in China in recent months. In December, the U.S. firm made a $1.5 billion takeover offer for Yingde Gases, one of China’s largest industrial gas producers, which at the time was listed on the Hong Kong Stock Exchange. Air Products eventually lost out to PAG, a Hong Kong private equity firm that made a rival bid.
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