Air Products Announces Further Strategic Expansion in Growth Regions
LEHIGH VALLEY, Pa., March 1, 2012 /PRNewswire/ — Air Products (NYSE: APD) announced plans today for two new significant investments in Russia, continuing the company’s strategy of investment in growth regions. Air Products will construct and operate an over 200 ton per day oxygen, nitrogen and argon liquefier and cylinder gases depot in Krasny Sulin in the Rostov region, which has a well-established manufacturing base, strong historic growth rate and very promising development forecasts. The total value of both investments is over USD $30 million (over EUR 25 million). Both the liquefier and packaged gases depot are expected to be on-stream in early 2014.
“We are continually looking for opportunities that allow us to strengthen our position in growth regions. Air Products is interested in viable commercial opportunities across Russia, including the Rostov region, as we firmly believe this geography has long-term growth potential. The liquefier and depot will allow us to supply both liquid and packaged gases to the merchant market and support our onsite customers,” commented Robert Mills, General Manager, Russia and Commonwealth of Independent States (CIS) at Air Products.
The new Air Products’ liquefier and cylinder gases depot 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.
“We are pleased that the Rostov regional administration recognizes the need for industrial gases to support manufacturing and economic growth in the region. This is where Air Products – as an integrated gas supplier – can utilize our core technology and product strengths from other geographies to help develop the region’s industrial gas market and meet the growing demand,” Mills said.
Air Products’ investments in the liquefier and packaged gases depot are to be implemented under the framework of the Memorandum of Collaboration (MoC) signed with the Administration of the Rostov region in Russia in October 2010. The MoC provides a cooperative and constructive basis for both parties to work together and develop collaborative activities.
“Air Products has demonstrated itself to be a reliable partner and shown a clear commitment to the Rostov region. By signing the Memorandum – under which the company is implementing their investments – sends a significant message to other investors: Rostov Oblast welcomes large projects that can benefit from the huge potential possessed by the Don territories,” said Vasily Golubev, the Governor of Rostov Oblast, on the decision.
This investment in Rostov follows a previously announced agreement signed with Sibur Voronezhsintezkauchuk, a leading Russian petrochemicals company, in September 2010 for the construction and operation of an air separation unit (ASU) to support Sibur’s manufacturing processes. This ASU is expected to be on-stream by July 2012.
About Air Products
Air Products (NYSE: APD) provides atmospheric, process and specialty gases; performance materials; equipment; and technology. For over 70 years, the company has enabled customers to become more productive, energy efficient and sustainable. More than 18,000 employees in over 40 countries supply innovative solutions to the energy, environment and emerging markets. These include semiconductor materials, refinery hydrogen, coal gasification, natural gas liquefaction, and advanced coatings and adhesives. In fiscal 2011, Air Products had sales of $10.1 billion. For more information, visit www.airproducts.com.
***NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company’s Form 10K for its fiscal year ended September 30, 2011.
SOURCE Air Products