Messer in compressed form

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Short profile: Messer in brief

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Company

Messer is the largest owner-managed industrial gas company in the world.

Products

Messer manufactures and supplies oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, shielding gases for welding, speciality gases, medical gases and food gases as well as many different gas mixtures.

Customers

Almost all industrial sectors as well as healthcare and science and research benefit from our products and application technologies.

The passion for air runs in the family

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1898 Adolf Messer founds Frankfurter Acetylen-Gas-Gesellschaft Messer & Cie. in Hoechstas a manufacturer of acetylene generatorsand lighting appliances

1903 Ernst Wiss develops the first hydrogen-oxygen cutting torch at Griesheim-Elektron. This is followed by equipmentand machinery for oxy-fuel weldingand cutting

1908 The first oxygen plant opens at ChemischeFabrik Griesheim-Elektron

1965 Hans Messer founds MesserGriesheimGmbH. Merger of Adolf Messer GmbH with parts ofKnapsack-Griesheim AG belonging toHoechst

1966 Expansion into Western Europe and NorthAmerica

1990 Expansion into Eastern and Central Europe

1995 Entry into China and rapid expansion

2001 Goldman Sachs Funds and Allianz CapitalPartners buy up Hoechst (Aventis) shares

2004 Founding of Messer Group GmbH. Messer is once again wholly owned by theMesser family

2005 Ownership of the welding and cuttingdivision passes back to the Messer family

2006 Sales exceed one billion euros for the firsttime: Messer and Messer Eutectic Castolin.Expansion of activities in Europe and Asia

2008 Messer Industriegase GmbH is founded inGermany

2011 Move to new joint company headquarters inBad Soden

2014 Tenth anniversary of Messer Group GmbH

The beginningand rapid growth

Evolution into aglobal enterprise

The way forward, backinto family ownership

If you work with volatile substances,you need enduring values

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Customer orientationWe are focused on the individual requirements of our customers and we help them to improve their competitiveness and performance.

Corporate responsibilityBy managing our resources responsibly and applying the talents of our employees, we add to the value of our family firm in the long term.

Mutual trust and respectWe believe that cooperation is based on dependability, sincerity, transparency and frank communication. We respect and abide by the cultural and social customs of the countries in which we work.

ExcellenceOur actions are based on technical expertise, innovation, flexibility and the ability to make quick decisions.

Employee orientationWe train, develop and encourage motivated and efficient employees with integrity. We expect our people to be resourceful and responsible team players.

Responsible behaviourWe take our responsibility towards our employees and society in general very seriously.

Keeping the world afloat

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If you work with a vital substanceand earn your living with it, youinevitably bear a special responsibility.

We are committed to:

• Measures to improve work safety

• Measures to protect theenvironment

• Measures to optimise energyefficiency

• Measures to ensure sustainabletrade

• Supporting social and community projects

Messer is morethan you expect

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Total sense of responsibilityplus total entrepreneurship in one man

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Stefan Messer

• CEO of Messer Group GmbH

• Stefan Messer’s roles include

− Chairman of the International Oxygen Manufacturers Association (IOMA), Washington

− Vice President of the Frankfurt Chamber of Industry and Commerce (IHK)

− Member of the Presidential Board and Board of Management of the German Asia-Pacific Business Association (OAV)

− Honorary Senator of Darmstadt University of Applied Sciences and Goethe University Frankfurt/Main

− Honorary Consul (Republic of Slovenia)

‘‘Making a profit is important to us, but it’s not the be-all and end-all.

It’s just as vital to be independent and to turn our own ideas into reality.”

Stefan Messer,CEO and owner of the Messer Group

Teamwork all the way to the top:The management of the Messer Group

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Stefan MesserOwner and Chief Executive Officerof the Messer Group

Dr. Hans-Gerd WienandsChief Financial Officerof the Messer Group

Optimal division of responsibilities:The extended management of the Messer Group

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Dr. Uwe BechtolfControlling /Accounting & Strategy

Johann RinghoferEngineering & Production

Stefan MesserChief Executive Officer

Dr. Hans-Gerd WienandsChief Financial Officer

Adolf WalthSales & Marketing Europe

From left to right:

Ready to meet any challenge:The Supervisory Board of the Messer Group

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Dr. Karl-Gerhard Seifert

Peter Wilhelm Stormvan’s Gravesande

Dr. Bodo Lüttge

Dr. Nathalie von Siemens

Dr. Jürgen HeraeusChairman

From left to right:

Dr. Werner Breuers

We make the most out of air

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• More than 100 years of expertisein industrial gases

• More than 60 air separation unitsworldwide

• Our “ Gases for Life ” productsare just as important as waterand electricity.

• We separate air into its three maincomponents nitrogen, oxygen and argonas well as the noble gases xenon andkrypton .

• We process and store these gases in liquidor gaseous form.

• We supplement them with other gases fromnatural or industrial sources.

SalesAir separation unit Products Customer segments

We do this all along the line

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Automotive

Construction

Environment

Food and beverages

Industry, productionand manufacturing

Medicine and pharmaceuticals

Metallurgy / steel,iron / glass and ceramics

(Petro)chemicals,rubber, plastics

Welding and cutting

Argon, speciality gases 1 %

Oxygen 21 %

Nitrogen 78 % Bulk 37 % Pipeline,on site 30 %

Others 8 %Cylinders 25 %

We’ve been doing it from the outset:

In Europe

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Air separation unitsin Europe

Existingair separation units

Air separation unitsunder construction or planned

Estonia

Latvia

LithuaniaRussia

Poland

Ukraine

Slovakia

RomaniaHungary

Bulgaria

Serbia

Macedonia

Albania

Montenegro

Bosnia-Herzegovina

Croatia

SwitzerlandSlovenia

Austria

France

BelgiumGermany

CzechRepublic

Portugal

Spain

Netherlands

Denmark

...as well as in China, Vietnam and Peru

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Air separation unitsin China, Vietnam and Peru

Existingair separation units

Air separation unitsunder construction or planned

China

Vietnam

Xiangtan /Hengyang

Chengdu WujiangShanghai

Ningbo / Shaoxing

Foshan

ShundeYangjiang

YuxiAnning

Xichang

ChongqingLeshan

Panzhihua

KunmingHaikou

Zhangjiagang

Peru

Shielding gases for welding andhighly developed welding gas mixtures

• TIG, MIG and MAG welding

• Forming

• Laser cutting

Our wide range of speciality gases

• Liquid helium for cooling super-conducting magnets in MRI scanners

• High purity gases for analytical processes

• Custom-made calibration gases

• Krypton for insulating glass panels

• Krypton-xenon mixture for halogen lamps

Medical gases for clinical treatment

• Anaesthesia

• Pain management

• Diagnosis

• Respiratory therapy

• Surgery

• Cryotherapy

• Biobanks

Pure gases and gas mixturesunder the Gourmet brand

• Cryogenic freezing

• Transport refrigeration systems

• Modified atmosphere packaging

• System solutions to optimise mixing and kneading processes

And we do a lot more besides

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Welding and cutting gases Speciality gases Medical ga ses Food gases

In detail: Welding and cutting gases

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Shielding gases for welding are soldunder standardised, Group-wide nameswhich are based on the materials beingworked:

• Ferroline – for plain and low-alloy steels

• Inoxline – for high-alloy steels andNi-based alloys

• Aluline – for aluminium and non-ferrous metals

Other welding and cutting gases

• Forming gas – protects the back of the weld against oxidation

• Lasline – for processing laser material and generating the laser beam

• Nitrocut and Oxycut – laser cutting gases

• Fuel gases – for oxy-fuel technology

In detail: Food gases

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Gourmet is the brand name underwhich Messer supplies pure gasesand gas mixtures for the food industry.

• Gourmet gases satisfy the highestquality standards.

• Gourmet gases conform to all European food regulations as well as all HACCP (Hazard Analysis and Critical Control Points) requirements.

Examples:

• Gourmet C: Carbon dioxide, e.g. for carbonating beverages

• Gourmet N: Nitrogen, e.g. for freezing,cooling and packing food

• Gourmet O: Oxygen, e.g. for packingfresh salads

• Gourmet A: Argon, e.g. for inerting toprotect wine

In detail: Speciality gases

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Messer offers an extensive range ofpure gases, standard mixtures and(on request) individual gas mixturesproduced to each customer’sspecification.

• Liquid helium (in dewars)

• High purity gases(argon, helium, oxygen, nitrogen, etc.)

• Noble gases (krypton, xenon, neon)

• Standard mixtures(argon/methane, laser mixtures, etc.)

• Custom-made mixtures (calibration gases)

• Laboratory gases(pressure cans, gas repurification systems, isotopes, etc.)

• Hydrocarbons (methane, acetylene, ethylene, etc.)

• Carbon monoxide

• Inorganic gases(ammonia, chlorine, sulphur dioxide, etc.)

• Refrigerants

• Gases for the electronic industry (e.g. semiconductor manufacturing)

In detail: Medical gases

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The most important medical gasesat a glance:

• Oxygen

• Nitrous oxide

• Carbon dioxide

Further medical gases are amongst others:

• Argon

• Gas mixtures

• Helium

• Air

• Nitrogen

• Nitric oxide in nitrogen

The most important areas of expertise, where medical gases are used:

• Anaesthesia

• Intensive care/emergency medicine

• Pulmonology

In detail: Medical gases

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In addition, medical gases are used in the following areas of expertise:

• Occupational medicine

• Biobanks/cryobanks and research institutes

• Surgery

• Dermatology

• Diabetology

• Gynaecology

• Haematology

• Cardiology

• Neonatology

• Ophthalmology

• Otorhinolaryngology

• Rheumatology

• Sports medicine

• Toxicology

• Veterinary medicine

• Dentistry

In detail: Pharmaceutical industry gases

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Gases for the pharmaceuticalindustry

Messer’s Pharmaline range includesspecially tested gases that are geared tothe needs of the pharmaceutical industry.They are designed to help manufacturersof medicinal products comply with thestipulations of EU Directive 2001/83 andadhere to GMP (good manufacturingpractice) guidelines. Messer bases the manufacture of Pharmaline products on the latest IPEC1 guidelines and EXCiPACT™2 standards.

1 IPEC – International Pharmaceutical Excipients Council,The Joint IPEC – PQG Good Manufacturing Practices Guide forPharmaceutical Excipients, 2006

2 EXCiPACT™ – a voluntary international certification scheme,Certification Standards for Pharmaceutical Excipient Suppliers, 2012

The most important gasesand applications:

• Pharmaline A: Argon (Ar),e.g. for inertisation

• Pharmaline C: Carbon dioxide (CO2),e.g. for the production of drugs inpowder form

• Pharmaline N: Nitrogen (N2),e.g. for packing in modifiedatmosphere

Many more, highly diverse applicationsexist for gases in the pharmaceuticalindustry in addition to those mentionedhere.

Genuinely good solutionswill always be in demand

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Where we are in Europe

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Our locations in Europe

• Albania

• Belgium

• Bosnia-Herzegovina

• Bulgaria

• Denmark

• Germany

• Estonia

• France

• Croatia

• Latvia

• Lithuania

• Macedonia

• Montenegro

• Netherlands

• Austria

• Poland

• Portugal

• Romania

• Russia

• Switzerland

• Serbia

• Slovenia

• Slovakia

• Spain

• Czech Republic

• Ukraine

• Hungary

Where we are in Asia, Algeria and Peru

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• Largest owner-managed industrial gas company in the world

• More than 120 sites ofour own

• 60 companies in31 countries

• Competence centresin Europe and Asia

We supply gas – just the way you need it

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Four paths, one goal:The right solution for each customer

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Safe solutionsfor small jobs:

• Cylinders or cylinderbundles

• 1,200 local distribution partners or direct from the filling plant

Efficient solutionsfor medium-sized jobs

• Storage tank on site with gassupply from a road tanker

• Small dewar solution,supplied by Messer servicevehicles

Optimised solutionsfor large jobs:

• Gas production at thecustomer’s site

• Air separation units

• PSA, VPSA or membrane plants

• Hydrogen and synthesis gasproduction facilities

Perfect solutionsfor the biggest jobs of all:

• Pipeline systems with a directconnection to the businesspark or bulk consumer

We make the gases life can’t do without

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Key industries rely on them:Gases for Life by Messer

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MetalworkingShielding gases for welding as wellas gas mixtures for materialprocessing and finishing, thermalspraying, laser welding and cuttingor MAG welding of plain steels

AutomotiveGases for xenon headlamps,airbags, air conditioning systems,tyres, emission control or cleaning

Glass and ceramicsOxygen for firing and manufacturingglass or ceramic products

Chemicals, rubber, plasticsGases for processing, finishingand recycling plastics or for us in therubber producing industry

ConstructionLiquid nitrogen to cool freshconcrete and cement prior to useor ensure optimal ground stabilityfor drilling and boring operations

Key industries rely on them:Gases for Life by Messer

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Medicine and pharmaceuticalsUltra high purity gases for a widerange of medical applications, asdrugs or medical products or for usein the pharmaceutical industry asprocess aids or inactive ingredients

ResearchUltra pure and laboratory gases,test gases, process gases and gasmixtures for research institutes,universities and development centres

MicrotechnologyFilling or shielding gases in tabletdisplays or processor circuit boards

Environmental technologyTechnologies and gases for use inwastewater treatment plants, at recyclingcentres or for waste gas cleaning inlarge-scale industrial plants

BeveragesCarbon dioxide puts the fizz intodrinks such as lemonade or beer andextends their shelf life

FoodGases to create a modifiedatmosphere which keeps foodnaturally fresh in its packaging

Maximum concentration – for new ideas in all areas

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Cold grinding / recycling• Cold grinding• Recycling• Cryogenics

Food / pharmaceuticals• Cooling and freezing• Transport refrigeration• Inertisation / packing• High pressure extraction processes• Spraying processes

Chemicals / paper / environment• Water treatment• High pressure extraction processes• Spraying processes

Welding & cutting• MAG welding• TIG welding• Thermal cutting• Thermal spraying

High temperature processes• Melting processes in metallurgy• Heat treatment• Glass productionKrefeld

Germany

GumpoldskirchenAustria

BudapestHungary

Mitry-MoryFrance

Welding & cutting• MAG welding• TIG welding• Thermal cutting• Thermal spraying

Maximum concentration – in Asia

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Welding & cutting• Shielding gases for welding

ChengduChinaMetallurgy / burning

• Melting processes in metallurgy• Glass production

Food• Cooling and freezing• Transport refrigeration

IndustrialCO2 purification• Purification with dry ice

and dry ice snow

NanjingChina

Adding value by valuing others

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Our success has 5,354 faces

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We are a genuine family-run firm with5,354 employees worldwide .

Our people represent the foundationfor our success and the future of ourcompany.

Together we generatedconsolidated sales of more than€1,166 million in 2015.

Individual development is a key priority

Basic principle:

If you have the courage to aim high,we’ll give you the freedom you needto achieve your goals.

Programmes:

• Differentiated qualification andcontinuing professional developmentprogrammes

• Training programmes

• International staff exchangeprogrammes

• Individual support programmes

• Individual career planning

Good staff are crucial wherever we are

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Employees by region: Employees by activity:

20155,354 employees worldwide

Western Europe16 %

Asia 40 %

Central Europe 14 %

South-EastEurope 25 %

Corporate Office 3 %Peru 2 %2015

Administration 19 %Filling 18 %

Application Technology 2 %

Production 30 %Logistics 16 %

Sales &Marketing 15 %

Sales and workforce size –for us they go hand in hand

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Sales Million €

2013 1,027

2014 1,047

2015 1,166

EBITDA Million €EBITDA

margin in %

2013 231 23

2014 241 23

2015 252 22

Investments Incl. IFRIC4in million €

2013 197

2014 205

2015 142

Employees Employmentcontracts*

2013 5,404

2014 5,449

2015 5,354

* As at 31 December 2015

Messer sales – breakdown, Part 1

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Sales by region: EBITDA by region:

20151,166 million € overall

Western Europe349

Asia 418

CentralEurope 192

South-EastEurope 184

Corporate Office 7Peru 16

2015252 million € overall Peru 2

Corporate Office 11

Western Europe52

Asia 101CentralEurope 37

South-EastEurope 49

Messer sales – breakdown, Part 2

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Sales by segment: Sales by industry:

2015

Pipelines /on-site 30 %

Bulk 35 %

Medical gasesand accessories 4 %

2015 Gas, water, wastewater,waste 2 %

Others 23 %

Engineering,metalworking,automotive 11 %

Metal, glass,ceramics 33 %

Hardware andothers 7 %

Cylindergases 24 %

Electrical, electronics 5 %

Health services 5 %

Food,beveragesand tobacco 6 %

(Petro)chemicals, rubberplastics 10 %

Competitors 5 %

Continually seeking to improve:Our expected growth rates until 2019

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Western Europe 3 %

Central Europe 2 %

South-East Europe 2 %

China and Vietnam 2 %

Average growth rate for the Messer Group: approx. 2 %

A whole world for more opportunities: Messer World

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Our world is clearly structured:The Messer World organisational chart

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Owners

Messer Medical Home Care Holding GmbH

Messer Group GmbH

Companies

Management

Brands

Adolf Messer Foundation / Messer family

100 %

CEO S. Messer CFO Dr. H.-G. Wienands

Messer Industrie GmbH

100 %

Messer Holding GmbH

100 %

MEC Holding GmbHCFO Dr. W. Schmitz

MEC Global GmbH

MIG Holding GmbH

MEC Employee IIGmbH

CEO S. Schabel

MEC Acquisitions GmbH

Stefan Messer

100 %

All the ingredients for a holistic solution:Messer, Messer Eutectic Castolin and their brands

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Everything under one roof – the “Messer World”is a one-stop shop where Messer andMesser Eutectic Castolin’s customersand partners will find many familiar brands:

• ASCO Carbon Dioxide is a provider of individual and completeCO2 solutions.

• BIT develops and manufactures in-vitro diagnostic medical devices.

• Castolin Eutectic is the world’s leading provider of productsand services linked to the maintenance, repair, servicing and wearprotection of industrial plants and factory equipment.

• Cryogenic Engineering is a joint venture between the Messer Group and Hangzhou Hangyang (China), the premier manufacturer of production plants.

• Messer Cutting Systems is a global supplier of flame cutting machines for thermal steel cutting

• Messer Group is the world’s largest owner-managed specialist for industrial gases.

• Messer Medical Home Care Holding develops products and services to enable patients to be looked after in their home environment.

• Spectron Gas Control Systems specialises in gas supply systems.

Strong group, good figures

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MEC Group sales by region in million €:

2015534

Germany 110

Asia 27

20152,849 South America

37

Germany 569

Asia 193

Western Europe144

China 32

Western Europe708

Africa & Middle East 102

MEC Group workforce size by region as at 31 Decembe r 2015:

North America 143

Japan 34

Eastern Europe 29

Africa & Middle East 11South America 4

North America 607

Japan 180

China 233

Eastern Europe 220

Part of the Messer World:ASCO CARBON DIOXIDE Ltd.

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Provider of individual and complete CO 2 solutions

CO2 solutions• CO2 production plants

• CO2 recovery plants

• CO2 storage tanks, both stationary and transportable

CO2 ancillary equipment and accessories:• Transfer pumps, vaporisers

• Detectors, flowmeters

• CO2 testers

Dry ice:• Dry ice production centres, pellets, discs and blocks

• ASCOJET dry ice blasting units and accessories

Part of the Messer World:Castolin Eutectic

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The worldwide leader for wear protection, protectiv e coatings and repair and joining technologies using welding, brazing and thermal spraying

Our capabilities:• Maintenance and servicing technologies

• Industrial surface protection

• Manufacture of high-performance components

• Castolin Services – workshops specialising in welding repairs,wearfacing and anti-wear coatings

• Special product packages for complex applications in key industries(oil and gas, steel, power generation, etc.)

• Extensive product range for thermal spraying, welding and brazing

1,614 employees in over 35 countries, including mor e than 550highly qualified engineers and application speciali sts in field /customer service

Part of the Messer World:Messer Cutting Systems

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Products and services for the metalworking industry ,spanning everything from welding, cutting and brazin g to annealing

Product portfolio:• Oxy-fuel, plasma and laser cutting machines

• From hand-guided machines to special purpose machines for the shipbuilding industry

• Integrated material handling systems provide increased efficiency

• Spare parts, repairs, modernisation, maintenance and servicing as well as innovative environmental technologies

• Our CNC controls and software solutions allow the machine to be integrated into the customer’s software environment

• Full-service strategy and on-site customer service worldwide combined with comprehensive practical training on systems and techniques

Approximately 900 employees in more than 50 countri es

Part of the Messer World:Spectron Gas Control Systems

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A gas supply systems specialist that prides itself onproviding the highest level of service, quality, re liabilityand technological expertise

Product portfolio:• Extensive product family – from simple valves to gas cylinder cabinets for

semiconductor gases as well as matching valves and accessories for awide range of gases

• Alarm and control systems for gas applications

• Purification systems to improve or secure the purity of the gases

• Production facilities in Germany, the UK and China (Shanghai)

Part of the Messer World:BIT Analytical Instruments

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Developer and manufacturer of diagnosticmedical devices for laboratories and hospitals

Product portfolio:• In-house expertise, know-how and systems in the fields of haematology,

clinical chemistry, immunoassays, coagulation, life sciences, infectious diseases, microbiology, molecular diagnostics and genetics

• Global development of in-vitro diagnostic devices

• Production on three continents

• Lifecycle support from development to obsolescence management

• Worldwide after-sales service, support and spare parts

• Highest quality standards, certification to ISO 13485 and FDA 21 CFR 820-30

Around 340 employees at facilities in Germany, Fran ce, China,Japan and the United States, over a third of whom a re engagedin development work

Part of the Messer World:Cryogenic Engineering

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A joint venture between the Messer Group and Hangzho uHangyang (China), the premier manufacturer of produ ction plants

• Air separation units for the production of oxygen, nitrogen and argon

• Cryogenic generators for nitrogen and oxygen

• Components for air separation units

• Pressure swing adsorption and membrane units for oxygen andnitrogen production

We apply our know-how to develop air separation uni ts that preciselymeet our customers’ requirements.We also make sure their plant operates as efficient ly as possible.

Part of the Messer World:Messer Information Services (MIS)

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The service company for Messer and MECinformation technology

• From the computer centre in Gross-Umstadt, MIS makes its servicesavailable centrally to some 4,500 Messer and MEC users worldwide.

• MIS provides IT applications to support the highly diverse and complexrequirements that exist within the Messer World.

Amongst other things, 77 employees and one trainee areresponsible for the ongoing development of process- optimisedsoftware programs and ensuring secure, high-perform ancecomputer centre operations.