JSE-listed African Oxygen (Afrox) has agreed to pay R97-million to buy technology and equipment for a new 200-t/d GOX 6000 air separation plant from controlling shareholder Linde.

The company would pay a further R93-million to install and integrate the GOX 6000 unit at its Pretoria West air separation plant, which would bring the total cost of the transaction to R190-million.

The industrial gas and welding products group said on Tuesday that the new plant would enable it to substantially enhance its production facilities.

The installation was expected to take place between 2011 and 2013, while the integration into product and service lines, as well as the civil infrastructure, would be undertaken internally by Afrox Technical & Engineering.

Linde Engineering, a division of Linde, would provide the full lump-sum turnkey plant, consisting of the 200-t/d GOX 6000 air separation unit, an Argon rectification column and associated equipment.

It was anticipated that the risk and ownership of the GOX 6000 plant would pass to Afrox within 24 months of placing the order with Linde.

The GOX 6000 plant was estimated to be fully integrated into the existing Afrox operations by January 2013.
 

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