Praxair to invest $200 million in China by year 2000.

BEIJING--(BUSINESS WIRE)--Sept. 19, 1995--Praxair, Inc., one of the world's largest suppliers of industrial gases with joint ventures in Beijing and Shanghai, plans to invest about U.S. $200 million in the People's Republic of China over the next five years, it was announced today by Praxair's Chairman and Chief Executive Officer, Mr. H. William Lichtenberger.

Additionally, Praxair announced:

o An agreement with Sichuan Air Separation Plant

Manufactory to design and build cryogenic air

separation systems in China

o An extension of its relationship with joint venture

partner Beijing Chemical Industry Group Company

o That Praxair will be a founding sponsor of a new

Chinese Management Education program for Chinese

general managers, a cooperative effort between the

School of Management of the State University of New

York in Buffalo and Renmin University in Beijing.

During a meeting in Beijing today with China's Vice President Rong Yiren, Mr. Lichtenberger reaffirmed Praxair's commitment to participating in China's future economic growth and technology modernization through strong strategic partnerships and focused investments.

"As China implements its Ninth Five-Year Plan and grows its industrial base to strengthen its rapidly expanding infrastructure, Praxair and its Chinese partners are developing many new business opportunities which will contribute to this growth," Mr. Lichtenberger told Mr. Rong.

"We will introduce advanced technology and management systems to help develop businesses which will compete successfully both domestically and internationally," Mr. Lichtenberger said.

"Improved productivity, quality, energy conservation, cost-effectiveness and environmental sensitivity will be driving forces in meeting our customers' needs in this increasingly competitive marketplace," he added.

Mr. Lichtenberger also announced that Praxair has reached a definitive agreement with Sichuan Air Separation Plant Manufactory (SASPM) to design and build cryogenic air separation systems in China.

As part of the agreement, Praxair will transfer advanced cryogenic air separation technology to SASPM. SASPM will work with Praxair to procure plant components from Chinese suppliers for use locally and for export to Praxair's regional businesses worldwide. SASPM will also participate in future domestic sales and marketing efforts.

"Currently, Praxair imports most of its air separation plant equipment into China. This is the beginning of a significant China-based operation which will bring major cost and technology benefits to our Chinese customers," Mr. Lichtenberger said.

Mr. Lichtenberger said Praxair also has extended its relationship with its joint venture partner in Beijing, the Beijing Chemical Industry Group Company (BCIGC).

"Today, Praxair and BCIGC have signed a memorandum of understanding which extends our mutual commitment to the industrial gases industry and, consequently, to our joint participation in the rapid growth of the pillar industries and commerce within China," he said.

"This effort will combine BCIGC's expertise in northern China markets and its proven record of success in the chemicals industry with Praxair's latest technologies, advanced management systems, and commitment to quality products and services. We also will be working to develop carbon dioxide and hydrogen businesses."

As part of its relationship with BCIGC, Mr. Lichtenberger said Praxair has signed an additional agreement with Beijing Oxygen Plant, a unit of BCIGC, for a joint venture to package and distribute low-cost fuel gases in the Beijing marketplace.

"This is a further expansion of our current successful business relationship into the production and marketing propylene-based fuel gases," he added.

Propylene-based fuel gases are used for cutting and melting metals in the manufacturing and maintenance industries, and offer environmental and energy-saving advantages.

Mr. Lichtenberger said that in recent days, he and ten other senior Praxair executives have been exploring many avenues to expand Praxair's business opportunities in China.

"During that time, we have met with our joint venture partners, BCIGC and Baoshan Iron and Steel Corporations and held discussions with a number of government and industry groups, including the Ministry of Chemical Industry, Ministry of Metallurgical Industry, Ministry of Foreign Trade and Economic Cooperation and the Shanghai Chemical Industry Bureau," he explained.

In another development, Mr. Lichtenberger announced that Praxair will be a founding sponsor of a China Management Educational program for Chinese general managers. This program will be jointly developed by the School of Management of the State University of New York in Buffalo and the Renmin University in Beijing. It is expected that the first students will begin their studies at Renmin University in 1996.

"Praxair's support is indicative of our commitment to help China develop its young managers and enable them to gain strong business and management skills necessary for running a successful business in a market-driven economy," Mr. Lichtenberger said. "Our sponsorship will include a commitment of $200,000 and participation in the program's advisory council."

Praxair, Inc., is the largest supplier of industrial gases in North and South American, and one of the three largest worldwide, with 1994 sales of $2.7 billion. The company is also a leading worldwide producer of air separation supply systems and high-performance coatings. Elsewhere in Asia, Praxair has operations in India, Indonesia, Japan, Singapore and South Korea.

CONTACT: Praxair, Inc.

William E. Hoerger (U.S.)

[phone]

or

Hill & Knowlton, Beijing

Cherry Pu (P.R.C.)

86 10 512 3524