Praxair Forms Chinese Joint Venture With Shanghai Meishan.

DANBURY, Conn.--(BUSINESS WIRE)--January 31, 1996--Praxair, Inc. and Shanghai Meishan Group Corporation Ltd. announced today the formation of a joint venture called Praxair Shanghai Meishan, Inc. in Meishan, Jiangsu Province, People's Republic of China.

Under terms of the agreement, Praxair will own 70 percent of the joint venture company and Shanghai Meishan will own 30 percent.

The joint venture will build a 550 tons-per-day (500 metric tons) air separation plant to supply oxygen, nitrogen and argon by pipeline to Shanghai Meishan Metallurgical Corporation, a subsidiary of Shanghai Meishan Group Corporation, for use in its new steel making facility. The plant also will supply liquid oxygen, nitrogen and argon to the glass, metals, chemicals, electronics and other industries in the Nanjing region. Scheduled to start up in the second quarter 1998, the project represents an investment of U.S.$30 million.

"The joint venture with Shanghai Meishan represents another significant step in our commitment to participate in China's economic growth and technology modernization through strong strategic partnerships," said Edgar G. Hotard, president of Praxair. "The new company -- our fourth joint venture in China -- will help meet the growing demand for industrial gases and Praxair's advanced applications technologies for the steel and other industries in the Yangtze Delta region."

"The joint venture with Praxair is the first majority, foreign-owned joint venture to supply on-site gases to a major steel company in China," added Dai Yuanyong, vice chairman of Shanghai Meishan Group Corporation.

As part of an agreement announced in September, Praxair will work with Sichuan Air Separation Plant Manufactory (SASPM), based in Jianyang in Sichuan province, to design and build the new air separation plant.

Praxair's other Chinese joint venture companies include Shanghai Praxair Baosteel, Inc., formed in 1993 with Baoshan Iron and Steel Corporation, and Beijing Praxair, Inc., a joint venture formed with Beijing Chemical Industry Group Company (BCIGC) in 1992. Praxair also has an agreement with BCIGC to form a fuel gases joint venture to serve the greater Beijing area. Praxair announced plans in September to invest about U.S.$200 million in China by the year 2000.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 1995 sales of U.S.$3.1 billion. The company produces, sells and distributes atmospheric, process and specialty gases and high-performance surface coatings. Praxair also is the world's largest producer of carbon dioxide and a recognized leader in the commercialization of advanced applications technologies that bring productivity, energy saving, quality and environmental benefits to a diverse group of industries.

Shanghai Meishan Group Corporation Ltd., formed in 1969, is one of China's leading producers of iron and steel, with 1994 sales of RMB 9.8 billion (U.S.$1.2 billion).

CONTACT: Jennifer Cain, Praxair

[phone]

[phone] - Fax

or

Ge Huiping, Meishan

(86-25) 6701885 ext. 4234

(86-25) 6700326 - Fax