Air Liquide in Russia March 2016

Air Liquide in Russia One of the leading industrial gas players in Russia World leader in gases for industry, health and the environment In 2005, OOO Air Liquide, the Russian subsidiary for production and sale of industrial gases was founded 15 industrial sites in key regions of Russia are operated by Air Liquide 650+ employees supply products and services to over 1,500 Russian and international customers €450 million of investments in Russia are committed by Air Liquide Since 1989 Air Liquide actively has been actively engaged in sale of advanced air separation and chemical technologies and projects management services in Russia

Air Liquide and Severstal Air Liquide Severstal was created in 2005, it is a joint venture in which Air Liquide holds 75% and Severstal 25%. It owns and operates two Air Separation Units to supply industrial gases to the Severstal steel production site in Cherepovets (Vologda region, Russia). The first Air Separation Unit with capacity of 3,000 tonnes of oxygen per day is the largest in the world in metallurgical industry. It was successfully started-up in July 2007. In 2010 Air Liquide and Severstal announced the enlargement of industrial gases production facilities for Cherepovets Metallurgic al Complex: the new ASU with capacity of 2,000 tonnes of oxygen per day was built. It was designed in accordance with Air Liquide innovative technologies. The cooperation between two companies goes forward in other regions: in Balakovo (Saratov region) Air Liquide built an air separation unit to produce industrial gases, which supplies oxygen, nitrogen and argon to Severstal ‘s new steel plant. The capacity of this ASU is more than 300 tonnes per day.

Air Liquide in Tatarstan Air Liquide Alabuga (Alabuga Special Economic Zone, Tatarstan) was created in 2009 to realize a new project of Air Liquide in Russia. The main customer is Preiss-Damler-Tatneft – Alabuga Fiberglass that uses gaseous oxygen in its technology of fiberglass production. Air Liquide started the exploitation of its new state-of-the-art Air Separation Unit with capacity of 240 tonnes of oxygen per day in 2012. Besides supplying gaseous oxygen for Preiss-Daimler-Tatneft – Alabuga Fiberglass also produces liquid oxygen and nitrogen for industrial customers in the region. Oxygen and nitrogen are widely used in machinery and metal works, food, electronics, medicine and in other activities. This plant plays an important role in modernization of industrial infrastructure of the region. It offers competitive products together with safe and modern methods of delivery and storage of industrial gases. The total amount of Air Liquide investments into production facilities and logistics is 35 million euro. Key dates of the project: May 14 2009 – signing of the contract with Preiss-Daimler-Tatneft – Alabuga Fiberglass to supply industrial gases, first public announcement about planned investments July 1 2010 – Start-up of the first phase of the plant to produce oxygen and nitrogen in SEZ Alabuga May 16 2012 – Start-up of the second phase of the plant 2014 – Start-up of the third phase of the plant which will produce hydrogen and nitrogen-hydrogen solution for ZAO Trakya Glass Rus.

Air Liquide in Russia: key data 1911: the first Air Separation Unit (ASU) in Russia was sold 1943-1944: 18 ASUs were sold to the Ministry of Defense of the USSR 1989: opening of a representative office for equipment sales in Russia and Ukraine (engineering and equipment) 1991: creation of SOVAL – a subsidiary for production and sale of rare gases 1995: first Air Liquide investment in a nitrogen unit for a paint and glazing factory in Zagorsk 1996-1998: sales of a nitrogen generator (membrane) and a hydrogen generator for the chemical and petrochemical industries 1998: modernization of a Russian ASU in Ukraine 2000-2004: sales of cryogenic units and membranes in Russia for Sibur, Akron, Lukoil, Salavatnefteorgzintez, Angarsk Petrochemical Company, Moscow OIl Refinery, Cherepovets Azot, Metafrax and etc. Sibur, Akron, Lukoil, NIPIgazpererabotka, Salavatnefteorgsyntez. Sales of five ASUs in Ukraine for Ilich, Azovstal, Zaporozhstal (2,000 tonnes of oxygen per day), production capacity in Alchevsk – 4,000 tonnes of oxygen per day. 2005: creation of OOO Air Liquide, a Russian subsidiary for production and sales of industrial gases. 2005-2008: signature of long term contracts for industrial gases production and supply with metallurgical works of Severstal in Cherepovets, Knauf Insulation (fiberglass production, Stupino, Moscow region), Guardian Steklo Ryazan (glass, Ryazan), P-D Tatneft – Alabuga Steklovolokno (glass industry, Elabuga, Special Economic Zone «Alabuga» in the Republic of Tatarstan) and several agreements with Mikron, the largest Russian semi-conductors producer. 2008: foundation of Sever Liquid Gas in Saint-Petersburg with core activity to supply a wide range of industrial gases to the customers in North-West region 2010: start-up of the first stage of ASU for oxygen and nitrogen production in Alabuga, Special Economic Zone in the Republic of Tatarstan. 2011: Announcement of Air Liquide project in Balakovo (Saratov region), ASU for Severstal 2012: Acquisition of Logika plant in Zelenograd, Inauguration of the 2d phase of ASU in Elabuga, Start-Up of the second ASU of AL Severstal and Filling Station in Kolpino, Acquisition of Lentekhgas in St.Petersburg 2014: OOO Air Liquide Balakovo, OOO Air Liquide Kstovo and APSA in Zelenograd (Mikron) were put into operation and the third phase of the plant in Alabuga was launched. 2015: Launch of the PSA unit for Knauf in Tyumen and Hydrogen production for Hevel in Novochegoksrsk. Air Liquide presence Regional headquarter Future production site Saint-Petersburg Russia Cherepovets Republic of Tatarstan Saratov Moscow Kazakhstan