Air Products Invests in Russia - Analyst Blog
March 06 2012 - 11:31AM
Zacks
Air Products and Chemicals Inc. (APD) announced
its plan to make two new investments in Russia, in sync with its
strategy of investing in growth regions. The combined value of the
investments is over $30 million.
Air Products will construct and operate an over 200 ton per day
oxygen, nitrogen and argon liquefier and cylinder gases depot
in Krasny Sulin – an established manufacturing locale in the Rostov
region. The company expects both the liquefier and packaged gases
depotto be on-stream in early 2014.
The company’s investments were implemented under a Memorandum of
Collaboration (MoC), signed in October 2010 with the Administration
of the Rostov region in Russia.
The new investments will allow the company to supply liquid and
packaged gases to the metal, glass, food, chemical and refining
industries in the Rostov and surrounding regions. With the Rostov
administration recognizing the need for industrial gases for its
economic growth, the company’s investments in this region represent
long-term growth potential. Air Products can use its technology for
developing the gas market while meeting the growing demand.
In September 2010, Air Products had signed a deal with a Russian
petrochemicals company, Sibur Voronezhsintezkauchuk, for the
construction and operation of an air separation unit (ASU) for
supporting Sibur's manufacturing processes. This ASU is expected to
be on-stream by July 2012.
Air Products Tonnage Gases and Merchant Gases segments face
stiff competition from Praxair Inc. (PX) and Linde
AG. Currently, the company retains a Zacks #3 Rank, which
translates into a short-term (1 to 3 months) Hold rating. We have
recommended the shares of the company as Neutral for the long term
(more than 6 months).
AIR PRODS & CHE (APD): Free Stock Analysis Report
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