Air Liquide Busy in Mid-East 2008.10 Business in the Middle East is accelerating for Air Liquide as investments totaling around $200 million are coming to fruition. Middle Eastern countries have double digit rates of GDP growth, leading to growth in the industrial gas market exceeding +20 percent per year. Industrial markets in this zone, such as petrochemicals, chemicals, metals and food, require increasing quantities of industrial gases.
Air Liquide’s Middle East subsidiaries are keeping busy with this demand. Shuaiba Oxygen in Kuwait has supplied the new petrochemicals plant Equate with oxygen, nitrogen and compressed air. A new ASU near Kuwait City has the production capacity of 1,500 tons of oxygen per day. In Qatar, Air Liquide’s subsidiary GASAL, has commissioned two new ASUs. One will supply the Qatar Steel Company (QASCO) with oxygen and nitrogen, as well as supply five other customers in the industrial basin through GASAL’s pipeline system. The ASU in Ras Laffan will supply nitrogen to the Ras Laffan Olefins Company (RLOC), a subsidiary of Qatar Petroleum, Chevron-Phillips and the Total group.
Air Liquide Egypt has just commissioned a new carbon dioxide production unit in Aboukir, to serve the developing food and soft drinks markets. Air Liquide Sohar Industrial Gases (ALSIG), Air Liquide’s subsidiary in the Sultanate of Oman, will begin to supply nitrogen to AOL (Oman Aromatics) in October 2008. The new ASU, located in the port of Sohar, will double current production capacity of the Group in the Sultanate of Oman.
The argon production from Shuaiba Oxygen, the acquisition of the Pure Helium company and the liquid sourcing available from the new projects provide ALMENA (Air Liquide’s Merchant subsidiary in the region) with rapidly expanding industrial merchant sales in Egypt, the United Arab Emirates, Saudi Arabia and other countries throughout the Gulf, in particular to the welding and construction markets.
Pierre Dufour, Senior Executive Vice-President of the Air Liquide Group, responsible for the Middle East zone, declared: “We are delighted that so many projects are coming to fruition in the Middle East, which enable us to be present in most of the markets in this zone. The Group is keen to meet the growing needs of its customers, in particular in the main industrial basins. These investments are carried by the trend for outsourcing industrial gas needs and are in line with Group growth strategy, which is to invest over one billion dollars in the Middle East in the coming five years.” (See more on this region in “Business Report from the Middle East,” p. 60.)
Air Liquide Invests in World-Scale Hydrogen Unit 2008.10 Air Liquide won a long-term contract to supply hydrogen to Neste Oil’s Renewable Diesel plant in Rotterdam. To meet Neste Oil’s requirements, Air Liquide is investing EUR 160 million in a new world-scale hydrogen production unit (Steam Methane Reformer – SMR) with a production capacity of 130,000 m3/hour. This represents an increase of more than 30 percent of its existing hydrogen production capacity in the basin. This unit, due to start up in 2011, will be connected to Air Liquide’s Northern European hydrogen network, which currently includes eight operating hydrogen units and more than 900 km of pipeline. This unit will allow the Group to meet the increasing needs of the customers of the Rotterdam/ Antwerp basin. Air Liquide has increased its worldwide production capacity of hydrogen by more than 50 percent over the past three years.
Air Liquide Secures Silane Supply 2008.10 Silane is a high purity gas and a key material used in the manufacturing of semiconductors, flat panel displays and photovoltaic products. The global market is growing at more than 25 percent per year thanks particularly to the booming demand in the solar panel market.
Demand for silane could exceed supply capacity in the coming years. Air Liquide, the world leader for silane with more than a 35 percent market share, has signed a new long-term supply agreement with Renewable Energy Corporation (REC). REC is a leading manufacturer of silane. Under the terms of this contract, Air Liquide will source a sizeable part of its silane requirements from REC. Air Liquide’s agreement with REC secures a major sourcing agreement and doubles Air Liquide’s access to silane while keeping the ambitious 2,000 tons per year production expansion program with its partner Denal. Despite market pressures, this dual and balanced sourcing policy will allow Air Liquide to serve its customers and partners worldwide.
Christophe Fontaine, Vice-President Electronics Air Liquide Group, declared: “This new silane supply agreement with REC in the US, combined with our production expansion in Japan, demonstrates again Air Liquide’s commitment to provide reliable and differentiated global silane supply solutions to our customers. This strategic partnership, which complements our investment in Electronics Material Centers in Asia, confirms our global leadership in ultra pure silane. (See “Growth in Gas Distribution Drives Demand for ISO Containers and Tube Trailers” on p. 38 for related story.)
Air Products Acquires Cryoservice 2008.10 Air Products completed the acquisition of a majority shareholding in CryoService Limited. CryoService Limited is a leading supplier of microbulk solutions in the UK. Air Products acquired its original 25 percent shareholding in CryoService Ltd. in 1998. This investment builds on Air Products’ strong position in the UK merchant gases sector and reaffirms its confidence in CryoService Limited and the microbulk method of supply.
CryoService Limited pioneered the microbulk concept in the early 70s. It offers the convenience of bulk gas deliveries to customers who would traditionally be considered too small for this method of supply. It will continue to operate as a separate entity, under the existing management team led by John Carver.
Air Products Exits US Healthcare 2008.10 Air Products has completed the sale of its US healthcare businesses, A&J Care and COPD Services, to Landauer Metropolitan Inc. (LMI), the largest provider of durable medical equipment, respiratory and infusion services in the northeast, based in Mount Vernon, NY. Terms of the deal were not disclosed.
Air Products announced in July plans to sell its US Healthcare business and to begin reporting the business as a discontinued operation. As part of that announcement, the company said it had reached preliminary agreement to sell A&J Care’s metropolitan New York operations in Glendale and Peekskill and COPD Services’ New Jersey operations in Runnemede, Cape May Courthouse and Cedar Grove. The 180 employees associated with these businesses have been offered employment with LMI.
“We are pleased to complete this sale to LMI as they are a large and reputable supplier of homecare products and services,” said Phil Sproger, Vice President and General Manager, US Healthcare. “We wish our employees well as they continue their employment with LMI and thank them for their hard work and dedication under difficult circumstances.”
Airgas Completes Refron 2008.10 Airgas, Inc. has completed the acquisition of the assets and operations of Refron, Inc. Refron, a nationwide reseller and distributor of refrigerants based in Long Island City, NY, provides technical services and refrigerant reclamation services; it generated $93 million in revenues in 2007. Refron will retain its name while becoming part of Airgas Refrigerants, Inc. Jay Kestenbaum, former President of Refron, leads the Refron team and serves as Senior Vice President of Product Management for Airgas Refrigerants. Jerry Kestenbaum, Refron’s former Vice President of Technology, continues in his role. Both Kestenbaums report to Chuck Broadus, President of Airgas Refrigerants.
Airgas Taps Two for New Positions 2008.10 Andy Cichocki has been named a Division President of Airgas. Cichocki’s division includes Airgas Carbonic, Airgas Dry Ice and Airgas National Welders. The move is part of the planned retirement transition for Ted Schulte, current Division President of Airgas Gas Operations, who will continue to direct Airgas Specialty Products, Airgas Nitrous Oxide and the newly formed Airgas Refrigerants until his retirement in the summer of 2009. Cichocki has served as President of Airgas National Welders and Airgas’ joint venture National Welders, based in Charlotte, NC, since 2003.
Steve Marinelli has been promoted to succeed Cichocki as President of Airgas National Welders, a former Airgas joint venture partner, which became a wholly-owned subsidiary of Airgas a year ago. Marinelli began his career with National Welders in 1980 as a store manager in Asheville, NC. He has served as Vice President of Marketing since 2000.
American Welding & Tank Expands 2008.10 American Welding & Tank LLC, a division of Taylor-Wharton International LLC, acquired Certified Cylinder, Inc. of Crossville, TN. The acquisition will significantly expand the refurbishing services currently offered by AWT. The newly purchased asset will operate as Certified Cylinder, a Division of American Welding and Tank LLC.
Mike Larsen, President of American Welding & Tank, noted that, “Certified Cylinder has certainly distinguished itself as the premier player in the D.O.T. vessel refurbishing business in the US. The company has an outstanding reputation for delivery of a quality product with exceptional service. The addition of the Certified Cylinder operations to our existing ASME refurbishing service will result in the largest and most comprehensive propane vessel requalification service in North America.”
Reggie Hall, former President of Certified, will remain with the acquisition in a consulting role, and Jerry Gilliam, AWT’s Director of Operations, will be responsible for the new AWT business. Brad McNeil will continue as Plant Manager in Crossville and other key Certified Cylinder employees have agreed to continue in their current positions.
Ted Reilly, AWT’s Vice President of Sales and Marketing, further commented, “This acquisition uniquely defines American Welding & Tank as the only ASME propane tank manufacturer and refurbisher of both ASME and D.O.T. cylinders worldwide.”
Amorphous Silicon Offers Cost Advantages 2008.10 Solar Thin Films, Inc., has entered into a strategic alliance and cross license agreement with Amelio Solar, Inc. Under this agreement Solar Thin Films will market and sell photovoltaic products using copper indium gallium diselenide (CIGS) technology developed and commercialized by Amelio Solar, and has rights to manufacture PV module manufacturing equipment using CIGS technology subject to certain terms and agreements.
"As the solar industry continues to shift toward thin film photovoltaic applications, the technology will continue to evolve," said Peter Lewis, Chief Executive Officer of Solar Thin Films. "Today our expertise lies in the process know-how required to produce a complete line of manufacturing equipment for the production of thin-film amorphous silicon modules. And we believe that amorphous silicon offers cost advantages over other commercially viable thin film materials available in the market. At the same time, we want to prepare for the emergence of other cost-effective thin film technologies, including CIGS and micro crystalline, by forming partnerships with companies like Amelio Solar and through our own research and development activities. Therefore, our plan is to position Solar Thin to utilize other thin film materials as the industry evolves."
ASUs for Coal-to-Chems 2008.10 Air Products has signed a long-term contract with Weihe Clean Energy Company Limited, a subsidiary of Shaan’xi Weihe Coal Chemical Group Ltd., one of China’s largest coalbased fertilizer and methanol producers, to supply onsite gaseous oxygen and nitrogen for its phase three coal-to-chemicals project in Weinan Hi-Tech Zone (WHTZ) in Weinan City, Shaan’xi Province, Western China.
Air Products will build, own and operate a new ASU on Weihe’s site near Xi’an, in Shaan’xi Province. Scheduled to come onstream towards the end of 2010, the ASU will produce more than 2,000 tons of oxygen per day. In addition, Air Products will supply liquid bulk gases to the fast growing merchant market around Xi’an.
Weihe Clean Energy Company Limited will use the high-pressure oxygen in the coal gasification process to produce syngas, which can be further separated into carbon monoxide (CO) and hydrogen. Syngas, CO and hydrogen are important precursors to produce basic chemicals for the growing consumer markets in China.
Butler Gas Promotes Kairys 2008.10 After eighteen successful months as a leader on the Butler Gas Products Company, Inc. sales team, industry professional Tom Kairys has been promoted to Vice President of Industrial Gases. Former Sales Manager at ACME Cryogenics, Kairys brings his resultsoriented sales expertise and his industry contacts to the diversified Butler Gas Products team. President/CEO Jack Butler commented, “Industrial gas is our fastest growing division, and Kairys has the knowledge and passion to lead that division.” As Vice President of Industrial Gases, Kairys reports to Executive Vice President of Sales, Heather Ferrand.
Byers to Head M&A for PDI 2008.10 Steve Byers, currently Southern Division General Manager for Praxair Distribution, Inc. (PDI), has been named Vice President of Acquisitions. He succeeds Rob D’Alessandro who remains Chairman of the Board of the Praxair Distribution Mid-Atlantic (PDMA) joint venture. Byers joined Marin Gas in 1988 and held various roles with that company until it was acquired by PDI in 1994. In 2006, he was appointed to lead the integration of the businesses and employees of Constar LLC into the newly-created Southern Division.
“Steve has successfully built the Southern Division through a number of acquisitions, and has become very familiar with our acquisition process,” commented George Ristevski, President of Praxair Distribution. “His diverse set of experiences and his knowledge of our industry will help make him a successful M&A leader.”
Cee Kay Celebrates 2008.10 Cee Kay Supply, Inc. officially celebrated its 60 year anniversary at company headquarters located at in St. Louis, MO on July 24th. As reported in our July 2008 issue (p. 13), Cee Kay is donating $60,000 to local charities during the course of the year to mark this special anniversary.
The July 24th event began with the unveiling of a life size welding sculpture and the dedication of the history room, which displays welding and industrial gas technology. The sculpture was put together with welding equipment that Cee Kay distributes, repairs and rents to their customers. Vendors such as Miller Electric, Lincoln Electric, Tillman, Walter Abrasives, Sait, Hougen Drills, and Hornell Speedglass donated equipment to the project, and approximately 37 customers provided the materials — scrap steel, metal and additional parts required to put the sculpture together.
CONCOA Gets ISO Certification 2008.10 CONCOA has received renewed ISO 9001 certification, which formally identifies and acknowledges systems and infrastructure in place for conducting business effectively and efficiently. The renewed certification applies to CONCOA’s design, manufacture, and assembly of gas control equipment and apparatus for the high-purity gas, medical, industrial, and welding markets. The audit focused on key processes, including product design and realization, manufacturing, monitoring, measurement analysis and improvement, as well as management responsibility and found that customer service, the benchmark attribute evaluated, is strong throughout the entire CONCOA organization.
Cryoheat Installed at Syntheall 2008.10 The Linde Group has an agreement to install a CRYOHEAT® system at SynTheAll Pharmaceuticals, a wholly-owned subsidiary of WuXi PharmaTech in Shanghai. WuXi PharmaTech is a leading pharmaceutical, biotechnology and medical device research and development outsourcing company with operations in China and the United States. CRYOHEAT® is specifically designed to provide both the cooling and heating needs of process reaction vessels with a single unit. The custom system is suitable for existing plant structures and for new builds. Under the terms of the contract, Linde will also supply engineering services, maintenance support and associated bulk gases.
Safer and more reliable than manual systems, Linde automated temperature control systems can significantly minimize maintenance and plant down time. They also offer increased accuracy in temperature control thereby improving efficiency, reducing energy consumption and preventing recurring operational issues, such as ice formation. As a result, product yield and plant production capacity are greatly improved.
DataOnline Teams With Blue Stacks in Thailand 2008.10 Blue Stacks Company Ltd., headquartered in Bangkok, signed an agreement to represent DataOnline products and services in Thailand. Robert Barnacle, DataOnline President, commented, “Blues Stacks has extensive Industrial Gas, Petrochemical and Chemical Industry experience and come with high recommendations from our existing customers who have a presence in Thailand. In our continuing effort to provide the very best in service and support globally, Blue Stacks has been chosen to represent DataOnline as part of our growth program for Asia. This is another success for our Asia Regional Office, based in Malaysia, which has been chartered with the task of growing our distribution network in that region.”
Panja Supprasert, Blue Stacks Managing Director, added, “We are excited about this opportunity to represent DataOnline. We have the resources and expertise to provide the local support for DataOnline’s products and services and have established relationships within the industrial gas and chemical industries. We hope to help DataOnline grow their presence in Thailand and provide the local expertise and support their customers expect.”
Eden Supplies Hythane to India 2008.10 Eden Hydrogen Inc., a US subsidiary of Eden Energy Ltd., has received regulatory approval for use of its Hythane® vehicle fuel in India. The Indian Standing Committee on Emission Regulation has approved the addition of up to 20 percent hydrogen to compressed natural gas (CNG) for use in vehicles.
"The approval of Hythane® as a vehicle fuel is exciting progress on the Indian Hydrogen roadmap, and an important step in the roll out of hydrogen as a clean fuel," said Greg Solomon, Executive Chairman, Eden Energy Ltd. India has now become the first country to consider Hythane® as natural gas, a transportation fuel standard.
"With this approval, licenses can be issued for Hythane® to be used as a vehicle fuel and for Hythane® outlets to be constructed nationwide, said Robert Gray, CEO of Eden Hydrogen, Inc. This opens the way for Hythane® to be used wherever natural gas is available throughout India."
As natural gas becomes more widely available, it is anticipated to spread significantly as a motor vehicle fuel in India. CNG is already used as a vehicle fuel in several cities, including Delhi, Mumbai, and Ahmedabad. Plans are underway to significantly expand this to 42 cities and to more than 230 cities in the longer term. The availability of natural gas will continue to increase from both imported and domestic sources as the pipeline network is extended across India.
Last fall, Eden Hydrogen was selected by Indian Oil to build the first public hydrogen Hythane® fueling station in India. The station is scheduled to open in Delhi later this year. Additionally, The Automotive Research Association of India, in conjunction with five leading engine manufacturers, is developing a range of engines which will operate on Hythane®, dramatically reducing NOx emissions which produce photochemical smog, a leading cause of lung cancer and serious respiratory problems.
Eleet Gives Back 2008.10 Eleet Cryogenics, Inc., of Bolivar, OH, donated a 500g fully rehabbed bulk tank to a GAWDA Gives Back Silent Auction for the Ranfurly Home for Children. The auction was held at the GAWDA Gettysburg Regional Meeting on September 3rd and was hosted by Doug Morton of Eleet Cryogenics, Inc. The tank sold for $16,500 — 100 percent of which will be donated to the Ranfurly Home for Children. Other miscellaneous items were also donated and sold at the auction. The auction and sponsorship funds generated a total of $21,500 for the orphanage, an extraordinary show of support for GAWDA’s important Gives Back program.
Gardner Denver to Acquire CompAir 2008.10 Gardner Denver, Inc., with headquarters in Quincy, IL, has entered into separate share purchase agreements with the holders of 100 percent of the outstanding shares of CompAir Holdings Limited, a leading global manufacturer of compressed air and gas solutions in the UK. The acquisition places a total enterprise value of the business at 197.5 million pounds (approximately $395 million), to be paid through a combination of cash and the assumption of existing CompAir debt. The transaction is expected to close in the fourth quarter of 2008.
CompAir, headquartered in Redditch, UK, operates through three business divisions: Industrial, Hydrovane, and Reavell. The Industrial division manufactures an extensive range of products, including oil-injected and oil-free rotary screw compressors, piston compressors, and portable rotary screw compressors. These products are used in oil and gas exploration, mining and construction, power plants, and general industrial applications. The Hydrovane division is a leading manufacturer of rotary vane compressors used in OEM applications such as snow-making and mass transit, and general industrial applications. The third division, Reavell, is a leading manufacturer of high-pressure reciprocating compressors producing air at delivery pressures in excess of 400 bar. Reavell’s compressors are used in applications such as compressed natural gas, industrial gases, breathing air, and in naval, marine and defense market segments.
“CompAir is an exciting strategic acquisition for Gardner Denver. The company has a reputation for high-quality, innovative products and best-in-class customer service, which strongly complements Gardner Denver’s existing operations,” said Barry L. Pennypacker, Gardner Denver’s President and Chief Executive Officer. “With more than three-quarters of CompAir’s sales in Europe and Asia, this transaction extends the geographic availability of Gardner Denver’s products and significantly enhances our channels of distribution to serve the global market. By blending the complementary product lines and geographical reach of CompAir and Gardner Denver, the combined business will be well positioned to take advantage of future growth opportunities for its products, services, and people.”
CompAir serves a diversified, global customer base of distributors, OEMs, end-users, and engineered system customers with a relationship strategy focused on product innovation and value added designs. The company addresses its global markets through a network of wholly-owned sales offices, local sales and service branches, and a number of independent distributors and agents worldwide. Its primary manufacturing facilities are located in Simmern, Germany; Ipswich and Redditch, UK; Ocala, Florida; and Shanghai, China.
Gases Plus Norco 2008.10 Norco, Inc., a welding, safety and medical supply company headquartered out of Boise, Idaho, announced the majority-share purchase of Gases Plus, a welding and industrial supply company based in Wyoming. Norco is the nation’s largest privately owned welding, safety, medical and gas supplier. The Company currently operates 42 branches in Idaho, Montana, Oregon, Nevada, Washington and Utah. (See “NORCO: A Many Faceted Company with a Keen Focus on Medical Markets,” Cryogas International, November, 2005, p. 22.) Gases Plus has provided welding, safety and janitorial equipment throughout Wyoming and parts of Montana for over 30 years, steadily growing to 140 employees and 14 locations.
“This merger with Gases Plus is a good fit for Norco and will help us grow to be a super regional welding supply distributor in the Northwest,” said Jim Kissler, CEO of Norco.
The union between Norco and Gases Plus will push Norco over the $200 million mark in annual sales, with over 900 employees in 56 locations serving customers in seven states.
“Teaming up with Gases Plus to create ‘Gases Plus Norco’ will allow both our firms to integrate technology and streamline production to better serve our markets. Norco has demonstrated the commitment to future growth through the addition of a new production plant, starting up in the fall of 2008, as well as an air separation plant currently under construction in Moses Lake, WA,” said Ned Pontious, President of Norco.
Larry Aarsby, President of Gases Plus, said that the merger will provide a great opportunity to expand its products and services to their customers. The decision to consolidate its shareholder base with Norco will create a bond that ties these two great companies and their customers together.
H2scan - Off to the Races 2008.10 H2scan Corporation has donated their HYALERTA 500 Handheld Hydrogen Leak Detector to the UCLA Hydrogen Engineering Research Consortium team as part of its sponsorship of their new zero emission, Formula Zero Championship Race Series. The Formula Zero Championship Race Series is a Dutch initiative that encourages university teams from all over the world to design and race zero emission, water-generating hydrogen-powered fuel cell race carts. Formula Zero's goal is ultimately to show the public that clean, environment-friendly fuels are also capable of high performance applications.
H2scan's Vice President of Sales and Business Development Cyril Berg stated, "Our HY-ALERTA 500 handheld hydrogen leak detector is perfectly suited to this race and its competitors because of the unit's portability and ease of use in detecting hydrogen leaks. This is an excellent opportunity for us both, and we are excited to participate and contribute to this global project to promote clean energy."
Helium in the Outback 2008.10 The Linde Group, through its Australian subsidiary BOC, has begun construction on Australia’s first helium plant, located in Darwin, Northern Territory. As discussed in this month’s 2008 Worldwide Helium Market Update on p. 30, helium is in tight supply around the world, making this announcement a critical one to our industry.
This will be the first helium plant in the southern hemisphere, supplying all of Australia’s domestic helium needs as well as providing capacity for export to New Zealand and to Asian markets. Linde’s Darwin plant will produce some 150 million cubic feet per year of helium — enough to meet three percent of the world’s helium demand. When the plant begins operating in July 2009, its production will replace helium currently coming to Australia from the United States and Middle East. It will be the world’s first new helium source in three years.
Steve Penn, head of Global Helium, Linde said, “Helium demand has increased most in Asia, with steady demand growth forecasted for at least the next five years. With global supply expected to remain tight for the foreseeable future, having a new Asia-Pacific helium source is good news not only for this region but for the entire world.”
Hydrogen Goes on Tour and NHA Names New Chair 2008.10 The US Hydrogen Road Tour, sponsored by US Department of Transportation, the US Department of Energy, the California Fuel Cell Partnership and the National Hydrogen Association (NHA), came to an end in August in Los Angeles’ Exposition Park. Linde and BMW were two of 11 participants in this event, with Linde North America supplying green hydrogen to fuel BMW Hydrogen 7 Series cars. (See full story on The Hydrogen Road Tour in “Energy Initiatives,” p. 54.)
“We hope the end of this tour represents the beginning of a national conversation about how Linde can help develop a safe and reliable hydrogen energy infrastructure in the US,” said Mike McGowan, head of Hydrogen Solutions for Linde North America.
“Linde is an expert in designing and delivering hydrogen refueling technology. We believe our participation in this tour proved that it’s practical for average citizens to drive hydrogen cars and refuel easily.”
McGowan was recently named the Chairman of the National Hydrogen Association, the world’s largest hydrogen technology trade association. The position of Chairman carries a two-year tenure.
“It is a very appropriate time for the NHA to choose a chair from an industrial gases company. Our industry serves the entire spectrum of NHA membership, from automotive and bus fleet applications to fork lift trucks, backup power systems and even micro-electronic devices. I am very proud and privileged to be chairing the NHA at such an exciting and pivotal juncture in the ongoing effort to make the promise of hydrogen a reality,” McGowan said.
In Memoriam - Art Holmes, Founder Of Chart Industries 2008.10 Arthur S. Holmes, founder and former Chairman and Chief Executive Officer of Chart Industries, Inc., passed away on Friday, July 18, 2008.
Holmes, with the assistance and support of his brother, Charlie, purchased Altec International in 1986, and the initial formation of Chart was established. Following this acquisition and several more, including Process Systems International and Process Engineering, Inc., Chart was organized into a public company in 1992. Under Holmes’ leadership Chart acquired Minnesota Valley Engineering (MVE) in 1999 and established the basic Chart footprint that exists today. Holmes left the employment of Chart in the fall of 2003 but remained as an outside Director of the company until 2005.
During his career as a Chemical Engineer and entrepreneur, Holmes patented some of the processes that today give Chart a competitive advantage, such as the Ryan/Holmes Technology for separating associated gases from enhanced oil recovery projects. In 1993, Art Holmes was named Engineer Alumni of the Year from Penn State University. In addition to the well-known contributions he made to our industry, Holmes possessed tremendous faith and was also well known for his outside interest and support of Christian organizations. He will be missed by many inside and outside the cryogenic industry.
ISO Accreditation for Red Ball 2008.10 Red Ball Technical Gas Services, a division of Red Ball Oxygen Co., Inc. that focuses its laboratory and production facility on specialty gas manufacturing and distribution, announced its accreditation to ISO/IEC 17025:2005 by Perry Johnson Laboratory Accreditation, Inc. Red Ball Technical Gas Services’ accomplishment will also be recognized by ILAC, the International Laboratory.
“Accreditation attests to the technical capability of a laboratory; it focuses on the technical competence, traceability of measurement and proficiency of the calibration lab. I have never been more proud of our team for meeting the high standards such accreditation demands,” said Mark Patten, Director of Red Ball Technical Gas Services. “By becoming ISO 17025 accredited, we can provide our customers with a proven system that promotes quality in every aspect of our day to day operations.”
Founded in 1969 by the Kennedy family, Red Ball Oxygen Co., Inc. has expanded its operations to include a state-of-the-art specialty gas laboratory, a modern cylinder filling operation, a full-service welding equipment service center, a palletized cylinder distribution system, and 18 customer service branches in Arkansas, Louisiana, and Texas.
Lee Joins Valley National Gases 2008.10 Valley National Gases LLC announced that Steven C. Lee has been hired as Vice President and General Counselor for Valley National Gases. Lee has in-house corporate and law firm experience across multiple industries, including retail, industrial distribution and manufacturing.
Lincoln Electric Builds in China 2008.10 Lincoln Electric Holdings, Inc. will construct a new, state-of-the-art welding consumables facility in Nanjing, China. The new facility, part of Lincoln’s Asia Pacific subsidiary, Nanjing Lincoln Electric Co., Ltd., will be located in Jiangning Science Park, Jiangsu Province. Nanjing Lincoln Electric will expand its product range and business scope at the new site to address the growing needs of its customer base in China. Lincoln Electric acquired the Nanjing welding business in July 2007 from Kuang Tai Metal Industrial Co., Ltd.
Lincoln Electric will develop approximately 68,000 square meters of land, with a multi-phase construction plan of over 30,000 square meters of manufacturing buildings. The plant will incorporate state-of-the-art manufacturing processes as well as welding demonstration and training facilities aligned with Lincoln Electric’s total solutions approach to the welding industry. The project is scheduled for completion in July 2009, with additional production capacity phased in over that time frame.
Linde Acquires P&B Industrial Sales 2008.10 Linde Canada, a member of The Linde Group, has acquired P&B Industrial Sales Inc., a Sudbury, Ontario-based distributor of welding gases and equipment. P&B is a privately owned company that has been in business since 1992. P&B is serving customers ranging from small to mid-sized manufacturers and fabrication shops in Sudbury and the surrounding areas.
“P&B’s employees, some of whom have over 30 years of experience with welding gases and equipment, bring expertise coupled with strong customer relationships in the Sudbury area. They will make an excellent addition to our already strong team in that region,” said Chris Ebeling, Vice President and General Manager, Linde Canada.
Meeting US Demand in Southeast 2008.10 Linde North America has commissioned a new air separation plant (ASU) in Cartersville, Georgia, some 40 miles northwest of Atlanta. The plant, located in the Guyton Industrial Park in Cartersville, will produce over 700 tons a day of liquid oxygen and nitrogen. The ASU was designed and delivered by Linde Process Plants (LPP), based in Tulsa, Oklahoma. LPP is part of The Linde Group’s Engineering Division.
From Cartersville, the gases are trucked to hospitals, food processors, metals and chemicals manufacturers in Alabama, Georgia, South Carolina and Tennessee. The plant employs over 30 people. Linde has seen demand in the Southeast increase steadily over the past few years, driven mostly by food processing and metals manufacturing. The location enables Linde to optimize its distribution patterns by freeing up production at existing plants in Alabama, North and South Carolina in order to better serve customers.
Messer Meets with Success At Home 2008.10 With orders totaling EUR 650,000, July was the most successful month in the Messer Group’s one hundred days of doing business in the German market. In May, Messer returned to selling its products on the home market after an absence of several years (see “Messer Steps on the Gas in Germany,” CryoGas International, July 2008, p. 3). Since that time the company has secured more than 70 contracts for the supply of liquid gases. Twenty additional contracts are due to come into effect throughout 2009. Messer’s new German subsidiary has already installed 25 tanks for storing gases on customers’ premises; another 25 will be in position by the end of this year, and as many again in the first half of 2009. Since May 2008, Messer has signed up more than 150 new German customers, with a total annual volume of about EUR 1.6 million. Customers are supplied through a network of 16 distributors covering Hessen, Pfalz, Baden- Württemberg and North Rhine-Westphalia. Messer supplies all industry sectors, including foodstuffs and research institutes, with technical gases either in cylinders or in storage tanks. Messer will also supply two of the largest German rehab and medical engineering firms with highly purified medical oxygen for home delivery to patients with respiratory diseases. The capacity of the planned medical oxygen production line at Messer’s new filling plant in Siegen is therefore being doubled.
Missouri's First H2 Station 2008.10 Linde North America provided hydrogen for Missouri's first hydrogen vehicle refueling station at Missouri University of Science and Technology's E3 (E-cubed) Commons development in Rolla. The opening event for the Rolla hydrogen station coincided with a stop along the US Hydrogen Road Tour that took place this summer. Linde is delivering, storing and supplying fuel cell-grade gaseous hydrogen for the station on behalf of the Gas Technology Institute, headquartered in Des Plaines, Illinois, which has partnered with the university. Linde also will provide technical support to GTI to ensure the safe and efficient performance of the refueling system.
MIT Makes Solar Energy Breakthrough 2008.10 According to the MIT news office, Daniel Nocera, the Henry Dreyfus Professor of Energy at MIT, and Matthew Kanan, an MIT postdoctoral fellow, have made a breakthrough discovery in the field of solar energy. They have found a unique, cost-effective way to harness energy from the sun. The two have discovered a catalyst that makes this process attainable. Their system would work while sunlight was being used by photovoltaic panels. With help from a catalyst invented by the two men, unused energy filtering through would be used to split water into hydrogen and oxygen. These would then be stored in a fuel cell on-site. The hydrogen and oxygen would be recombined in the fuel cell to produce electricity when there was no sunlight.
More Pressure on Pricing 2008.10 Air Liquide America Specialty Gases LLC increased prices between five percent and 20 percent for cylinder oxygen, acetylene, carbon dioxide, hydrogen and other gas products. Prices for helium will be increased between 20 percent and 25 percent. In addition, cylinder rental fees will be increased by 10 percent while delivery charges will be increased by 25 percent. Increases became effective September 1, 2008 or as allowed by customer contracts.
Praxair Distribution, Inc. notified its industrial, medical and specialty gas cylinder customers in the US and Canada of price increases. Increases include up to 30 percent for helium, hydrogen, fuel gases and rare gases; 15 percent for oxygen, nitrogen, argon, carbon dioxide/dry ice and specialty gases; 15 percent for cylinder rental and facility fees; and five percent for equipment and consumables. In some circumstances, price adjustments may be higher or lower than these percentages. Actions were implemented in response to rapidly escalating energy, fuel and other operational costs, current supply/ demand imbalances and increases in the cost of capital goods required to support product supply to customers.
TW Cylinders LLC, a division of Taylor- Wharton International LLC, reinstated surcharges on all invoices covering acetylene and high-pressure cylinder shipments. The most recent basis for the adjustments are the direct pass-through of fuel surcharges currently charged by the freight carriers and other suppliers serving Taylor-Wharton’s factories and our customers. All Taylor-Wharton customers have signed documents confirming their obligation to pay surcharges related to raw materials, energy, fuel and other cost components which are assessed by the company’s suppliers.
Worthington Cylinders announced a seven percent price increase on all 20 lb. steel propane cylinders. Prices increased with all orders shipped on or after September 15, 2008. This increase is in addition to the 36 percent previously announced on steel portables earlier this year.
“Steel prices continue to escalate,” said Dusty McClintock, Vice President of Sales and Marketing. “Although the rate of escalation appears to be moderating, rising energy, fuel and other miscellaneous manufacturing expenses have made it necessary to pass on an increase to the market.”
N2 for Pharmaceuticals 2008.10 Over the next four years, Messer will supply the Peruvian company of Sintesis Quimica S.A. (Sinquisa) with liquid nitrogen, which the pharmaceuticals firm will use for cooling as part of its production process. Founded in 1975, Sinquisa is one of the leading pharmaceutical companies in Peru. Each year, the industrial group produces around 150 tons of synthetic antibiotics and more than 80 tons of commodities for the pharmaceutical industry throughout Peru and the rest of Latin America.
New Consulting Consortium 2008.10 TAP Resources and Special Gas Service (SGS) have announced the formation of a business and technology consulting consortium specifically focused on the compressed gas industry and its independent distributors. The consortium is made up of three principals, Paul Matlock and Al Coulter of TAP Resources, and Ray Borzio of SGS, as well as a wide range of outside associate professionals with extensive experience in the gas industry. The group will specialize in business assessments that identify opportunities and provide problem solutions for new product development and profit improvement. The consortium will provide strategic and operations education, as well as training, in Specialty Gases, Medical Gases, Operational Efficiency, Product Losses, Asset Utilization, and Safety Process Development, utilizing the concept of Lean Thinking and the development of Strategic Planning.
Now Offering Days, Not Hours, of Back-Up 2008.10 Ballard Power Systems and IdaTech LLC have signed a three-year supply agreement under which Ballard will provide a fuel cell product for integration into IdaTech's next generation of ElectraGenTM system. This will create 3kW and 5kW methanol-fueled backup power solutions offering days (rather than hours) of extended runtime capability, suitable for a broad range of sites within the wireless telecom industry.
"This supply agreement for ElectraGenTM enhances our position as fuel cell supplier of choice in the industry," said John Sheridan, Ballard's President and CEO. And, integration of our fuel cells into higher power backup power products will help accelerate adoption of fuel cells by wireless telecom service providers.
A key to providing long runtime capability is the use of an alternative fueling approach in which IdaTech's reforming technology generates on-demand high purity hydrogen from liquid methanol. Backup power solutions utilizing this fuel cell technology deliver a number of significant advantages over conventional batteries and diesel generators, including: higher reliability over a wide range of operating conditions; lower maintenance costs; longer operating life; and reduced size, weight, installation footprint and environmental impact.
Nuclear Gets the Cold Treatment 2008.10 Cold Jet has been selected to provide two customized integrated dry ice blasting and production systems for the Hanford Nuclear Waste Treatment Plant in Hanford, Washington. Bechtel National, Inc. is designing, constructing and commissioning the waste treatment plant to dispose of the world’s largest concentration of radioactive waste, leftover from US weapons production efforts during the Cold War era.
The waste will be vitrified by blending it with molten glass and placing it in stainless steel canisters to ensure hundreds to thousands of years of stable and impermeable storage. Cold Jet’s integrated blasting and pelletizer systems will be part of an automatic weld inspection system installed in the site’s Low Activity Waste Facility. The CO2 pelletizer will automatically feed the blasting systems, which will clean the welds made to fasten the end caps of the steel canisters so that the welds can be inspected for leaks. The waste treatment facility and Cold Jet’s equipment are expected to be operational for 40 years.
“This project represents the epitome of a ‘green’ application for Cold Jet,” said Gene Cooke, CEO of Cold Jet. “We have undertaken years of research and development to meet the stringent standards and requirements that were defined in the original request for this project.”
Particles Complete First Circuit at CERN 2008.10 A beam of particles completed its first circuit in the Large Hadron Collider (LHC) operated by the European Organization for Nuclear Research, known as CERN, on September 10th. The LHC, a particle accelerator used by physicists to study the smallest known particles, is located underground near Geneva. The collider spans the border between Switzerland and France and has a circumference of 26,659 meters and a total of 9300 magnets inside. According to CERN, the magnets within the accelerator are pre-cooled to -193.2°C (80 K) using 10,080 tons of liquid nitrogen, before they are filled with nearly 60 tons of liquid helium to bring them down to -271.3°C (1.8 K).
Linde AG is a participant in the LHC project and when protons were accelerated for the first time in September, Linde’s cooling systems were put into action. Extremely strong magnetic fields are required to keep the highenergy protons on their 27 km circuit. These magnets and the accelerator’s cavities are cooled by eight high-performance cooling systems distributed on the circuit’s periphery. Each of the eight cooling systems is allocated one multi-stage, cold compression system, each of which is installed in a separate cold box. The temperature of the magnets is reduced to 1.8 degrees Kelvin (-271 degrees Celsius) and only helium is capable of achieving this. The superconductivity that occurs in the magnetic coils at such an extremely low temperature makes generation of the necessary magnetic field strength possible.
The helium chilling system was designed, constructed and installed by the Linde subsidiary, Linde Kryotechnik AG, whose headquarters are in Pfungen, Switzerland. Operation and maintenance of the systems are carried out by Linde Kryotechnik in cooperation with two other companies in the consortium.
“We are pleased to be able to contribute our expertise to this unique, fundamental research project,” said Dr. Aldo Belloni, member of the Executive Board of Linde AG. “Just like the LHC as a whole, the technology we have implemented sets new standards. After years of planning and preparation, we are glad that we can make our contribution toward the attainment of new scientific insights.”
CERN’s LHC project also includes approximately 1,000 high temperature superconductor (HTS) leads. CERN selected American Superconductor of Devens, MA to provide HTS wire for those leads. (See more on American Superconductor (AMSC) in “Tiny Wires Have a Powerful Impact” Cryo- Gas International, August/September 2008, p. 78.) In total, AMSC provided 14,000 meters (over eight-and-a-half miles) of HTS wire, which is now enabling the LHC’s operation.
The actual experiments in the LHC consist of controlled proton collisions. Two clustered particle beams circulating in opposite directions are pushed toward each other in one of the four large detectors. By documenting the fission products thus generated, researchers hope to make fundamental new insights into the physical processes that took place during the big bang.
Praxair Builds 4th ASU at Shaoguan Steel 2008.10 Praxair China Investment Co., Ltd. has signed a long-term supply agreement with Guangdong Shaoguan Iron & Steel Group Co., Ltd. whereby Praxair China will build a large ASU to go on-stream in mid-2010. The new plant will supply oxygen, nitrogen and argon for Shaoguan Steel’s increased production capacity. The plant will be the fourth Praxair ASU constructed at Shaoguan Steel and will increase Praxair’s total production capacity to 3,550 metric tons of oxygen per day. Praxair China has been supplying gases to the rapidly-growing Shaoguan Steel, one of China’s key industrial enterprises, for nearly 10 years.
Praxair Supplies BP 2008.10 Praxair will supply hydrogen and steam to BP’s refinery complex in Whiting, Indiana. Praxair will build two new hydrogen plants with a total capacity of 200 million standard cubic feet per day, scheduled to start up in the second half of 2010. BP will use the hydrogen to produce very low-sulfur gasoline and diesel fuels in the refining process, and to upgrade heavy Canadian crude oil to lighter, cleaner-burning fuels.
Praxair has been operating in northern Indiana for almost 100 years. BP and other customers in the region currently are supplied from four locations where Praxair operates 10 ASUs, a rare gas facility and four smaller hydrogen plants. The Praxair operations center in East Chicago, Indiana, controls 130 miles of pipeline that delivers oxygen and nitrogen, as well as hydrogen.
Praxair Surface Technologies Expands 2008.10 Praxair Surface Technologies, a whollyowned subsidiary of Praxair, Inc., has completed a major expansion in its Indianapolisbased ceramic coating facility, which is used to coat aircraft engine components for General Electric. Representatives from Praxair Surface Technologies and GE–Aviation attended a commissioning ceremony at the facility, whose capacity has been expanded by over 50 percent. Using GE licensed technology Praxair Surface Technologies is now supplying increased volumes of Electron Beam – Physical Vapor Deposited (EB-PVD) ceramic coatings, which provide state-of-theart thermal barrier protection, to critical engine components.
“We’re very pleased to have expanded our long-standing relationship with GE by making this additional investment in EB-PVD ceramic coatings,” said Mark Gruninger, President of Praxair Surface Technologies. “Advanced ceramic coatings are an important part of the future of aircraft engines and it’s clear that GE’s technology will continue to enable considerable improvement in engine performance.”
Rohde Receives Scott Melman Award 2008.10 Airgas presented its eighth annual Scott Melman Award to Mike Rohde, Senior Vice President, Distribution Operations, for his exemplary leadership in the pursuit of excellence. The award, named for Scott M. Melman, former Chief Financial Officer of Airgas, Inc., honors “Airgas employees who exhibit the qualities we remember in Scott M. Melman: Professionalism, perseverance, enthusiasm, energy, a sense of honor, and the courage to speak up and make a difference.”
“Mike has spearheaded two of our most significant organizational efforts of the past year, leading the integration of the US packaged gas business that we acquired from Linde, and implementing operational efficiencies in our distribution business,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “We are on schedule to deliver the $10 million of run-rate savings that we committed to shareholders in September 2007, and since that time, we have been integrating the Linde business, generating synergies in excess of expectations. Mike has been instrumental in both accomplishments.”
McCausland added, “Because of his deep industry expertise and his ability to execute well on large-scale projects, Mike is playing a key role in our efforts to enhance customer service, and he will also provide critical leadership for our upcoming SAP implementation.”
Sherwood Announces Plant Consolidation 2008.10 Sherwood Valve LLC, a Division of Taylor- Wharton International, will consolidate all manufacturing and assembly operations into the Company’s Washington, Pennsylvania and Cleveland, Ohio facilities. Current production processes at the Niagara Falls, NY factory will be relocated to Washington and Cleveland.
Roger Carlson, President of Sherwood Valve LLC, commented that, “The consolidation of production from three to two facilities will yield significant manufacturing efficiencies, contribute to streamlined administration practices and generate opportunities to leverage raw materials, inventories, labor skills and similar processes among Sherwood’s multiple product lines.” Carlson further noted that, “We estimate the relocation of machinery and personnel to be complete within 3-6 weeks of our commencement date during the month of August.”
Product lines to be moved from Sherwood’s Niagara Falls factory to Cleveland include industrial valves, medical valves, SCUBA products, life support valves and propane valves and fittings. The resulting manufacturing system at Cleveland will be the most complete, vertically integrated, valve production facility in North America with all processes from the smelting of brass chips to finished product occurring at a single location. The move will provide Sherwood’s customers with the opportunity to consolidate shipments of multiple products into single freight movements and harvest the resulting transportation savings. An additional benefit will be the ability to exploit freight resources and improve service to Sherwood’s international customers and global warehousing locations.
Additionally, the Company expects energy consumption related to the valve business to decrease by approximately 30 percent and predicts a 30 percent reduction in waste generation.
Skaff Gives to Franciscan Hospital for Children 2008.10 Steve Snyder, Chief Development Officer of the Franciscan Hospital for Children in Boston, MA, accepted a $25,000 donation to the hospital on August 21st from Skaff Cryogenics. The Franciscan Hospital for Children has pioneered programs for children with disabilities and is one of the nation’s largest pediatric rehabilitation hospitals. Skaff Cryogenics, of Brentwood, NH, repairs and remanufactures cryogenic and LNG tanks and trailers.
Skychain Offsets Soaring Costs 2008.10 Skychain, a wholly-owned subsidiary of Air Products, has developed a web-based inventory monitoring technology that accesses real-time data, enabling users to automate forecasting, optimize production and delivery, and reduce the risk of inventory depletion to lower distribution costs through a more effectively managed supply chain.
“As gas prices continue to soar, users can reap even greater value through Skychain’s ability to provide them with the right data at the right time so they can schedule fewer, more timely deliveries to customers,” says Patrick Kuchevar, Vice President at Skychain. “With little to no upfront equipment fees and user-friendly tools for remote electronic management of customer inventory levels, Skychain technology is one key way to drive costs from the supply chain and improve revenue.”
Used successfully by its liquid gas bulk supply business for more than 12 years, Skychain is now making this technology available to the chemical industry. The equipment uses sensors to monitor product levels in a customer’s tank or other container, taking readings every hour and transferring information to the user twice a day. Skychain provides, installs, and supports the equipment, including sensors, computer software, communications tools, and the information technology infrastructure that allows users to go on-line, or into their own Enterprise Resource Planning systems, to review inventory and production operations data. Skychain’s forecasting modules predict future needs based on actual usage patterns and proven mathematical algorithms.
Solar Modules Soak Up More Sun 2008.10 Sempra Generation, a subsidiary of Sempra Energy, will develop its first solar energy project, a 10-megawatt (MW) photovoltaic power-generation facility adjacent to the company's existing El Dorado Energy power plant near Boulder City, Nevada. When completed later this year, the El Dorado Energy solar project will be the largest operational thin-film, solar-power project in North America. Arizona-based First Solar will be the engineering, procurement and construction contractor for the project and will monitor and maintain the plant.
First Solar's modules employ an advanced thin-film semiconductor technology to convert sunlight into electricity without air emissions or water use. The solar modules absorb low light more efficiently than conventional solar panels and convert the sunlight into electricity even in cloudy weather and dawn and dusk conditions. As a result, First Solar modules will generally produce more electricity under real-world conditions than conventional solar modules with similar power ratings. El Dorado Energy's solar power plant will not use heated water or other liquids in the power-generation process.
Thermax Promotes Gibson 2008.10 Thermax promoted Paul Gibson from European Sales Manager to Vice President, European Operations. Gibson is responsible for expanding sales, overseeing operations, and has bottom line responsibility for Thermax operations in Europe, the Middle East, Africa, and Eurasia. Gibson has over 25 years of cryogenic equipment experience and his successful expansion of Thermax sales in Europe led to his promotion. He will continue to be based out of Thermax UK offices in Egham, UK.
Tire Inflation Gets Political 2008.10 Recent political talk about tire pressure serves as an important reminder to motorists about the fuel saving benefits of properly inflated tires. The US Department of Energy (DOE) estimates that as much as 1.2 billion gallons of fuel is wasted in the United States each year due to under-inflated tires. Additionally, nitrogen inflated tires maintain proper pressure up to three times longer than air inflated tires, enabling motorists to realize the fuel saving benefits of proper tire inflation for a greater period of time.
“Nitrogen is a superior material for tire inflation because it diffuses through tire rubber about 40 percent more slowly than air, helping the tire maintain proper pressure longer,” explains Ashok Mathur, Business Manager at Air Products, which makes the UltraFill® High-Purity Nitrogen Tire Inflation System. “Proper pressure reduces rolling resistance, which maximizes gas mileage.”
Wall Street Results 2008.10 Airgas Inc. reported net income of $68.9 million, or 81 cents a share, for the first quarter, which ended June 30, up from $51.7 million, or 63 cents a share, for the year-ago period. The company reported $1.1 billion in sales for the quarter, up from $915 million for the same period last year, according to a filing with the Securities and Exchange Commission. In March, Airgas acquired the assets and operations of Northeast Gas Technologies Ltd., an Albany, NY distributor of industrial, medical and specialty gases and related equipment. Northeast Gas had five locations in upstate New York and Vermont.
First half 2008 Group revenue for Air Liquide reached EUR 6,370 million, up +13.2% on the previous year (+16.7% at constant exchange rates). The Group’s 1st half growth includes a record second quarter for the Gas & Services activity up +9.9% comparable, after continuous acceleration in 2007 and a high level in the first quarter 2008. See full report in “Wall St. Views” p. 56.
Chart Industries, Inc. reported favorable results for the second quarter that ended June 30, 2008. Net sales for the second quarter of 2008 increased 18 percent to $197.8 million from $167.6 million in the comparable period a year ago. Gross profit for the second quarter of 2008 was $64.0 million, or 32.3 percent of sales, versus $51.3 million, or 30.6 percent of sales, in the comparable quarter of 2007. See full report in “Wall St. Views” p. 56.