Air Water will assume operations of an air separation unit at Tata Steel’s Jamshedpur facility in Jharkhand next month, Nikkei reported. The facility produces 1,800 metric tons of oxygen daily, along with nitrogen, argon and compressed air for the steelmaker’s blast furnaces and melting shops.
The Japanese industrial gas producer will purchase the plant from Tata Steel and supply gases under a 20-year contract. Financial terms weren’t disclosed. The unit is currently undergoing stabilization before the handover.
The deal expands Air Water’s presence in India’s growing steel sector. The facility will boost the company’s oxygen production capacity in India by roughly 40%. Air Water will also sell gases to other manufacturers in the region.
Air Water acquired on-site gas operations serving two of India’s largest steelmakers from Linde and Praxair in 2019. The company is separately building a facility for state-owned Steel Authority of India in West Bengal, scheduled to begin operations in October 2025.
India is targeting crude steel production of 500 million tons annually by 2034, up from around 150 million tons currently, creating sustained demand for industrial gases used in steelmaking processes.
