Hurricane Katrina Update: Air Products' Liquid Hydrogen Supply Situation Improving
September 12 2005 - 1:09PM
PR Newswire (US)
LEHIGH VALLEY, Pa., Sept. 12 /PRNewswire-FirstCall/ -- Air Products
(NYSE:APD) today announced an update on its liquid hydrogen supply
and the status of its New Orleans, La. production facility impacted
by Hurricane Katrina. The company reported that it has been able to
secure additional hydrogen supplies from other sources and find
different ways to improve the liquid hydrogen shortage situation
with product management. Air Products is in the process to begin
repairing its New Orleans facility, but water must be drained from
the site area to regain road access and power supply. "To date, we
have been able to maintain supply to the majority of our customers.
While we will not be able to meet full demand of all customers, the
situation has improved, and we informed our customers of this a few
days ago," said Mark Bye, group vice president, Gases and Equipment
Group for Air Products. "We have been working closely with our
customers to understand their precise requirements and identify
options to best manage their current and future hydrogen supply."
Air Products is encouraged that it has been able to continue
supplying customers with hydrogen by converting some customer
operations from liquid to gaseous hydrogen supply. The company is
also securing product from other sources, such as customers without
immediate needs releasing their stored hydrogen back to Air
Products. Additionally, the company has determined that some
inventory at its New Orleans facility is undamaged and can be
distributed when safe road access becomes available. Air Products
is also working on arrangements for alternative feedgas supply to
its liquid hydrogen facility in Sarnia, Ontario, Canada. "We're
ready to make plant repairs. We have our people and contractors
positioned, and we're lining up materials. We need the continued
help of the government to get the water out of the surrounding
plant area to get safe road access and restore infrastructure. Then
we can deliver the stored inventory to our customers and begin
repairs. At that point, we can begin looking to a start-up date,"
said Bye. Despite the improved situation in continuing to supply
customers, the force majeure on liquid hydrogen remains in effect.
"We understand our customers' concerns and appreciate their support
and flexibility in these difficult times. They recognize the
challenges we face from the storm and have been supportive," said
Bye. "We are committed to resolve these issues as rapidly as
possible." All other Air Products industrial gas and chemical
operations in the Gulf Coast area, including the pipeline system,
are on-stream and delivering multiple products to customers. Air
Products also supplies gaseous hydrogen from its New Orleans
facility to two refiners in the immediate local area. This
production is currently shutdown as a result of the storm. Air
Products (NYSE:APD) serves customers in technology, energy,
healthcare and industrial markets worldwide with a unique portfolio
of products, services and solutions, providing atmospheric gases,
process and specialty gases, performance materials and chemical
intermediates. Founded in 1940, Air Products has built leading
positions in key growth markets such as semiconductor materials,
refinery hydrogen, home healthcare services, natural gas
liquefaction, and advanced coatings and adhesives. The company is
recognized for its innovative culture, operational excellence and
commitment to safety and the environment and is listed in the Dow
Jones Sustainability and FTSE4Good Indices. The company has annual
revenues of $7.4 billion, operations in over 30 countries, and
nearly 20,000 employees around the globe. For more information,
visit http://www.airproducts.com/. "This press release may contain
forward-looking statements that are based upon the company's
current beliefs and expectations as to the outcome and timing of
future events and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
projected by the company. Such risks and uncertainties are
disclosed in the company's filings with the U.S. Securities and
Exchange Commission. The company disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements to reflect any change in the company's
beliefs or expectations or any change in events, conditions or
circumstances upon which any such statements are based."
DATASOURCE: Air Products CONTACT: Art George, +1-610-481-1340, ; or
Investor Inquiries: Philip Sproger, +1-610-481-7461, , both of Air
Products Web site: http://www.airproducts.com/
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