Shanghai Air Water Medical Gas (so named locally with a capital of USD5.6 million) invested jointly by Daiho Sangyo and Air Water to develop the sterilization gas business in China has decided to establish a sterilization gas company in Wuhan for the second time in China. At present the company is selecting a site for construction for the planned completion within 2016.

Since 2003 when the joint company was established in Qingpu District of Western Shanghai, it has been doing the production and supplying business of sterilization gases mainly over the districts of East China. Its packaged gas and cartridge business including the export to Japan grew at a good pace, and attained the production of 2000 tons in 2014. Having an urgent issue of expanding capacity, the investment has been decided to establish a new plant in Wuhan the central city of Hubei Province aiming for the future expansion of business and stream-lining of transportation.

The planned new plant is sized nearly similar to the Shanghai Plant. The distance between Wuhan and Shanghai is about 700 km on a straight line basis and about 900 km when using the high way, but when the new plant starts operation, the transportation cost will be saved considerably because gas is being supplied to Wuhan from Shanghai now.

According to Hitoshi Shibata, general manager of the company, the Chinese sterilization gas market is estimated to be 16,000 tons per year and about 30 companies including the company are participating in the business, but the local competitors have side jobs and delivering a range of 10 or more to 100 tons per year. There is no competitor dedicated to the business only. The largest factor of the satisfactory accomplishment of the company attributed to the quality consciousness. The general manager points out the uprising evaluation of the quality despite the higher price comparing with the competitors, resulting in the increased delivery, and also referred to the top share of sales in the field of sterilization gases although there is an influential competitor of the gas major in Beijing.

In addition, the company seems to have a good relationship with the Chinese Government. In the year before last the company started to produce electrodeposition coatings for aluminum sash in its Shanghai Plant, which was certified as “Energy-saving and Environment-friendly Enterprise” by the Qingpu District Authority of Shanghai City. The Chinese Government suffering energy shortage encourages energy-saving of factories and gives reward to an enterprise which attains a designated level of energy-saving.