The volume of the divested business is 90 million cubic feet (approx. 425 tonnes) per year and will render GGGE the largest domestic helium supplier in China.
GGGE will now be able to source directly from three international helium producers, namely Qatar, Darwin in Australia, and Amur in Russia.
This is considered a major breakthrough for Chinese industrial gas companies, as in the past they could only buy from the international majors.
Helium: Why everything you knew is about to change
The company finally received the green light from the European Commission (EC) and China’s State Administration of Market Regulation in February this year, 10 months after being considered as a suitable purchaser by anti-trust authorities.
According to local information, China imported 4,126 tonnes of helium in 2018, and 2,041 tonnes in the first half of 2019. The imported helium accounts for 95% of the demand of helium in China; it has been estimated that this helium demand in 2020 will reach around 4,400 tonnes.
China now a major market for helium
GGGE
A subsidiary of Guangzhou Iron and Steel Enterprise, GGGE is a well-established industrial gas company based in Guangzhou city of the Guangdong province in China, with over 30 years of experience and a strong reputation in the China industrial gases market.
Its current activities include the supply of industrial gases, electronic specialty gases and medical gases, as well as helium.