May 8--Danbury-based Praxair Inc. is growing internationally through deals with partners on two other continents.

Praxair (China) Investment Co. Ltd. has set up a joint venture in Guangzhou, China, with China Petroleum & Chemical Corp. (Sinopec) and will become a supplier to Changhong Electric Co. Ltd., while Praxair Inc. has signed a marketing agreement with Nikolaus Sorg GmbH & Co. KG, a subsidiary of The Sorg Group of Lohr am Main, Germany.

Praxair makes, sells and distributes industrial gases, as will its Chinese joint venture, Praxair-GPC Industrial Gases Co. Ltd. A major customer will be Sinopec Guangzhou, which will get its nitrogen supply from the venture, expected to start operations in the fourth quarter, according to David Chow, president of Praxair China.

"This first alliance with Sinopec is a major milestone for Praxair China. It is also a demonstration of our commitment to continued investment in the Chinese marketplace," he said in a statement.

The Sinopec deal follows a contract announced last month between Praxair China and Changhong Electric Co. Ltd., a provider of consumer electronics including plasma display panels, to supply xenon gas to a Changhong factory in Sichuan Province.

Despite the downturn, China is a growing customer for Praxair, particularly in the electronics, metals and chemical industries, said spokeswoman Susan Gore.

"As China continues to further develop its industrial infrastructure, it's still

going to be a growth market for us," she said, declining to disclose financial details on the three contracts.

Praxair and Sorg will promote high-efficiency technology for glass melting in the United States and Canada. Their joint offerings include a Sorg furnace design, as well as Praxair's advanced combustion systems and heat recovery applications.

The technologies and services will deliver enhanced energy efficiency and lower emissions to the glass-melting industry, said Scott Sanderude, vice president of marketing and business development for Praxair's North American Industrial Gases.

"Sorg's experience and reputation as a state-of-the-art leader in glass melting complement Praxair's technologies and on-site industrial gas supply capabilities in the North American glass industry," he said.

Praxair on April 29 reported first- quarter net income of $290 million, compared with $307 million for the same period last year. Much of the dip can be attributed to a downturn of customer demand, which started in November 2008, Chairman and Chief Executive Officer Steve Angel told investors.

He has expressed optimism for the remainder of 2009.

"Our productivity programs have reduced costs significantly to offset the impact of lower volumes. When the economy does recover, this will give us substantial operating leverage on volume growth," he said. "We signed several new contracts this quarter for energy projects in the U.S. and Europe."

The company is showing signs of life in the down economy, according to Laurence Alexander, an analyst for Jefferies & Co., who has a "buy" on the stock.

"Praxair's leverage to pricing cycles in the U.S., Europe and Brazil, coupled with ongoing productivity initiatives, should support free cash flow in a volatile environment," Alexander said in a recent report.

"Praxair still has levers to contribute to structural improvements in return on capital and return on equity."

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