Linde India to purchase two air separation units from Tata Steel

Recently, Linde India has entered into a plant sale agreement with Tata Steel to purchase two 1,800 t/d (tonne per day) air separation units (ASUs) from the manufacturer’s Kalinganagar Phase II expansion project.

In a stock exchange filing, Linde said, note that the company has entered into a plant sale agreement with Tata Steel Ltd for the acquisition of its industrial gas supply assets – ×21,800 t/s unit at its Kalinganagar Phase II expansion project.

The acquisition sent Linde India’s shares soaring 6.09% today (September 5) to an intraday high of Rs 7,641.60 ($90.72) per share.

This follows Tata Steel’s announcement of Linde India as the successful bidder to own, operate and maintain gas supply infrastructure at Tata Steel’s Kalinganagar plant in September 2023. Under the agreement, Linde India will manage the supply of industrial gases to the steel plant for a period of 20 years.

The decision follows a competitive bidding process to find a reliable partner to manage the plant’s ASUs. These air separation units are essential for the production of industrial gases such as oxygen, nitrogen and argon, which are vital for steelmaking processes, including oxygen steelmaking.

The contract supports the Kalinganagar Phase II expansion, which aims to increase the plant’s capacity from 3 to 8 tonnes.

Tata Steel Kalinganagar is the first Indian plant to be included in the World Economic Forum’s Global Lighthouse Network in recognition of its leadership in applying Industry 4.0 technologies.

The Global Lighthouse Factory Network recognizes manufacturing plants and industrial hubs around the world that have demonstrated leadership in applying Industry 4.0 technologies to achieve improvements in efficiency, productivity, and environmental sustainability.

Industry 4.0 technologies include advanced digital tools such as artificial intelligence (AI), the Internet of Things (IoT), robotics, big data analytics and machine learning, which together enhance automation, connectivity and real-time data processing in the manufacturing industry.

Besides Tata Steel Kalinganagar, other plants in the network include BMW’s plant in Regensburg, Germany, which uses AI to improve production; Procter & Gamble’s plant in Rakona, Czech Republic, for its smart automation; and Foxconn’s plant in Shenzhen, China, which uses IoT and data analytics to optimize production.

India is the world’s second largest steel producer, producing about 143.6 million tonnes of crude steel in FY2024 (India Brand Equity Foundation).

India has more than 100 dedicated air separation units (ASUs) for industrial use, most of which directly support the steel industry.