Air Water will construct its 11th VSU, a small type, highly efficient liquid gas plant, in Yamaguchi Prefecture, on the grounds of the former Kanebo plant in Bofu. Completion of the plant is set for June of next year.

The construction capacity will be 600 Nm3 an hour for liquid oxygen, and 1,400 N m3 an hour for liquid nitrogen, for a total production capacity of 2,000 Nm3 an hour. Air Water Plant Engineering will handle the construction of the plant. The investment totals 1.4 billion, with Air Water being the sole investor.

To construct the plant, Air Water will obtain a grant under the Subsidy for the Promotion of Business at Sites in Japan granted by the Ministry of Economy, Trade, and Industry. The company will obtain a grant of about 200 million yen for this project.

The VSU has a level of efficiency along the lines of a large plant. The VSU business is based on the concept the transportations costs can be reduced by having production and consumption at the local level. With the current plant, the company is looking toward a rationalization of transportation costs of about 40 million a year by reducing the distance run by trucks to transport the gas.

Also to be noted is that in April of this year VSU #10 will commence operation in Hirakata, Osaka Prefecture. This plant will produce argon as well. In April of 2004 VSU #1 went into operation in Niigata Prefecture so that this Air Water VSU base has been around now for nearly 8 years. During this time framework this business has expanded to include VSUs at more than 10 locations.