News | October 3, 2006

Airgas To Build An Air Separation Plant In Carrollton, KY To Supply Dow Corning And Expand Production

Radnor, PA & Carrollton, KY - Airgas, Inc. announced that it will build an air separation unit (ASU) in Carrollton, KY, to supply Dow Corning Corporation and to meet increasing demand for bulk and packaged gases in the region.

Airgas will build the plant on Dow Corning's property located on Four Mile Road with engineering and equipment provided by Universal Industrial Gases, Inc. (UIG). Airgas and Dow Corning signed a long-term agreement effective immediately for gaseous nitrogen, giving the project a key base-load pipeline customer. When completed in late 2008, the plant will have the capacity to liquefy at least 350 tons per day of nitrogen, oxygen, and argon. Its expandable design will support additional pipeline customers and liquid production.

"We look forward to serving Dow Corning's needs with this new state-of-the-art production facility," said Mike Molinini, executive vice president and chief operating officer of Airgas. "This project fits with our previously announced strategy to consider our own plants to augment our gas supply in those markets that remain underserved by the industry."

Dow Corning Supply Manager Jodi Dudley commented, "This agreement with Airgas will provide a long-term, economical source of nitrogen for our Carrollton facility. We are pleased to be working with Airgas to move this project to the next phase."

"UIG is excited to provide Airgas with the engineering and latest cryogenic equipment to build a cost-effective, reliable, plant that will serve both Dow Corning and Airgas' merchant product demands," said Sam Piazza, president of UIG. "We are pleased to be a part of this important new investment in the industry."

As the nation's largest distributor of industrial, specialty, and medical gases, Airgas currently buys the majority of its atmospheric gas supply from multiple industrial gas producers. With its joint venture affiliate, National Welders Supply Company of Charlotte, NC, Airgas operates six ASUs, producing 1,800 tons per day, primarily in the eastern half of the United States.

"We will operate the new plant within our Gas Operations Division, which has the necessary expertise to run the production plant," said Molinini. The Gas Operations Division operates air separation plants, carbon dioxide production plants, nitrous oxide production plants, and dry ice production plants nationwide. The new ASU will eventually employ more than 20 employees in production and distribution.

"This partnership strengthens our local industrial base, and it creates jobs," added Carroll Co. (KY) Judge/Executive Harold "Shorty" Tomlinson. "This is good for our community."

SOURCE: Airgas