(Yicai Global) June 7 -- Hangzhou Oxygen Plant Group, a Chinese producer of industrial gases, has secured its first overseas build-own-operate supply contract.

Hangzhou Oxygen will set up a CNY297 million (USD41.7 million) joint venture in Indonesia’s northern Maluku province to build and operate an air separation plant whose industrial gas products will be supplied to the local stainless steel project of PT Karunia Permai Sentosa for 15 years, it said yesterday.

Hangzhou Oxygen will own 51 percent of the JV, PT Karunia Permai Sentosa 40 percent, and a Hong Kong-registered investment company the rest, the firm added.

The project will help the firm accumulate experience abroad and aid its overseas expansion, especially in Southeast Asia, the Hangzhou-based company noted.

In a separate statement the same day, Hangzhou Oxygen announced that it will set up a unit in China’s southwestern Sichuan province. The new company will invest CNY580 million to build and operate two air separation facilities to supply industrial gases to a local steel mill of Sichuan Dazhou Iron and Steel Group for 15 years.

This is its first industrial gas project in southwestern China, which is important for expanding the company’s industrial gas supply business in the Sichuan-Chongqing region, it added.

Shares of Hangzhou Oxygen [SHE: 002430] fell 0.6 percent to close at CNY33.80 (USD4.75) apiece today. The wider Shenzhen market also fell 0.6 percent.

Editor: Futura Costaglione