Shanghai Baosteel Gases and Warburg Pincus announce formation of strategic partnership

Shanghai Baosteel Gases Limited, China’s leading industrial gas producer, and an affiliate of Warburg Pincus, a global private equity firm focused on growth investing, have announced the formation of a strategic partnership to jointly explore and develop projects in the industrial gas field.

Furthermore, under the strategic partnership, the two parties have reached agreement with Henan Jinkai Chemical Investment Holding Group to acquire its industrial gas assets for RMB3 billion (US$487 million).

Established in 2008, Baosteel Gases is a wholly-owned subsidiary of Baosteel Metal. Thanks to its experienced and expert management team, high professional standards and pioneering spirit, Baosteel Gases has quickly established its industry leadership and has become one of the key development areas among the diversified businesses of Baosteel Group, China’s leading steel conglomerate.

Baosteel Gases cover a variety of areas in industrial gases, synthetic gases, packaged gases and new energy, operating through more than 10 subsidiaries in China’s Eastern, Northwest and Southern regions. Backed by the resources of Baosteel Group and the robust efforts of the management team, Baosteel Gases has built a strong set of core competitive advantages.

With currently more than US$39 billion in assets under management, Warburg Pincus has invested over US$50 billion in 720 companies globally. Since inception, Warburg Pincus has invested more than US$14.7 billion in over 110 energy and industrial companies, covering a wide range of industrial and energy areas such as aircraft, automobile, security equipment, refrigeration, oil and gas, power and renewable energy.

Since entering the Chinese market in 1994, Warburg Pincus has invested more than US$4 billion (equivalent of more than RMB25 billion) into leading Chinese companies in the industrial, energy, consumer and retail, healthcare, real estate, and technology, media and telecommunications (TMT) industries.

Mr. Sheng Zhongke, CEO of Baosteel Gases, stated:

As one of the leading global private equity firms, Warburg Pincus has built a solid track record in investing and building energy and industrial companies both in China and globally. We look forward to working with Warburg Pincus to further expand and deepen our footprint in the industrial gas field at home and abroad, and to accelerate the execution of our internationalization strategy.