Linde Sees the Positive 2009.11 November 2, 2009 – Industrial gases company The Linde Group continued the positive trend of the second quarter in a market environment which remained difficult, achieving further increases in profitability in the months July to September in comparison with the previous quarter. In the third quarter, Group operating profit rose by 12.5 percent compared to the second quarter, while the operating margin increased significantly to 22.5 percent (2nd quarter: 20.4 percent). The operating margin also continued to improve if a comparison is made between the first nine months of 2009 and the same period in 2008. The Group operating margin for the period to September 30, 2009 was 20.9 percent (2008: 20.3 percent). Adjusted for one-off restructuring costs of EUR 80 million, the operating margin was 21.9 percent.
“The positive trends we were seeing at the end of the second quarter have continued to strengthen,” said Professor Dr Wolfgang Reitzle, Chief Executive Officer of Linde AG. “The measures we have taken to achieve sustainable increases in productivity are having an ever greater impact. What’s more, demand in our gases business is beginning to pick up again slowly. However, one thing’s clear: in the 2009 financial year, we will not be able to match the level of sales and earnings achieved in the record year 2008. Nevertheless, based on our current figures, we expect our business performance in the second half of 2009 to be better than in the first half of the year.”
Energy Efficient ASU to Supply Tonnage, Merchant, and Electronics Customers 2009.11 November 2, 2009 – Air Products plans to build a new world-scale air separation unit (ASU) at its La Porte, Texas industrial gases facility. The energy efficient ASU will replace older assets at the site and provide benefits to customers through higher-reliability pipeline oxygen and nitrogen supply, and enhanced production of merchant and electronics products including argon and xenon. The new ASU is to be on-stream in October 2011.
The new La Porte ASU will ensure the long-term operational viability and customer supply security of one of Air Products’ key liquid argon sources for the North American market. Argon is used primarily for welding, electronics, steel and metals processing applications. The plant also will expand Air Products’ xenon production capacity and improve customer supply security and reliability. Xenon continues to grow as a key material used in the etching steps of semiconductor manufacturing, and the additional volume will support growth in the emerging technologies of plasma display and other lighting applications which depend on xenon’s special properties.
Airgas Reports on Second Quarter 2009.11 November 2, 2009 – Airgas, Inc., the largest US distributor of industrial, medical, and specialty gases, and related supplies, reported net earnings of $54.5 million, or $0.65 per diluted share, for its second quarter ended September 30, 2009. Excluding a $0.02 per diluted share debt extinguishment charge and a $0.01 per diluted share multi-employer pension plan withdrawal charge, adjusted earnings per diluted share were $0.68, compared to $0.86 per diluted share in the prior-year quarter. Cost reductions and operating efficiencies continued to support the Company’s operating margin, which posted only a modest decline year-over-year to 11.4 percent from 12.5 percent and improved sequentially from 11.0 percent in the face of a challenging sales environment.
Second quarter sales were $962 million, a decline of 17 percent from the prior year. Total same-store sales declined 19 percent, with hardgoods down 27 percent and gas and rent down 14 percent. Acquisitions contributed 2 percent sales growth in the quarter.
World’s Largest Landfill-to-LNG Facility Produces 2009.11 November 4, 2009 – The joint venture company between Waste Management, Inc., North America’s largest waste services company, and Linde North America, part of The Linde Group, the industrial gases and engineering company, has begun producing clean, renewable vehicle fuel at its facility located at the Altamont Landfill near Livermore, California. The facility is the world’s largest landfill gas (LFG) to liquefied natural gas (LNG) plant.
The plant, which Linde built and operates, purifies and liquefies landfill gas that Waste Management collects from the natural decomposition of organic waste in the landfill. The plant is designed to produce up to 13,000 gallons of LNG a day – enough to fuel 300 of Waste Management’s 485 LNG waste and recycling collection vehicles in twenty California communities. Since the commissioning process began in September, the plant has produced 200,000 gallons of LNG.
“The Altamont LFG-to-LNG facility enables us to recover and utilize a valuable source of clean energy in another practical way, reducing our dependence on fossil fuels. Conventional LNG is already a clean-burning and economically viable alternative fuel for our collection trucks,” said Duane Woods, Senior Vice President for Waste Management’s Western Group. “The ability to use recovered landfill gas to fuel our hauling fleet offers significant environmental benefits to the communities we serve in California and is a great example of how we are committed to recovering resources in waste.”
The Altamont LFG-to-LNG facility also meets two of California Governor Schwarzenegger’s environmental directives: the Bioenergy Action Plan, which seeks to advance the use and market development of biomass as a transportation fuel, and Executive Order S-3-05, which aims to reduce the state’s greenhouse gas emissions by 25 percent by 2020.
IBG Opens CO2 Production Facility 2009.11 November 10, 2009 – Industria Brasileira de Gases (IBG) has opened its first CO2 production plant located in Descalvado, São Paulo state, Brazil, 242 km from San Paulo city. The unit represents investments of R$10 millions (about US $5.6 million). The new plant started up in July and will initially employ 15 workers.
Newton de Oliveira, President of IBG said that this is a new stage in their expansion project that will allow IBG to strengthen its presence in the CO2 market, and replaces product they formerly purchased from other producers, thus lowering costs. Thus far in 2009 IBG has already invested R$30 million in its fourth air separation unit in Jundiai and filling stations in various cities in Brazil.
Air Products to Supply Hydrogen to ExxonMobil in Rotterdam 2009.11 November 11, 2009 – Global hydrogen provider Air Products has both a long-term supply contract and new plans to build a world-scale hydrogen production plant to serve ExxonMobil’s (Esso) Rotterdam refinery in The Netherlands and additional customers in the region. The plant will feature technology advancements to maximize facility energy efficiency and emission reductions. It will be connected to Air Products’ extensive Rotterdam hydrogen pipeline network system, add four miles of pipeline to the existing 35-mile hydrogen system managed by Air Products in the region, and is expected to be on-stream in the second half of 2011.
“We are proud to strengthen our relationship with ExxonMobil with this new contract in Europe and to build a new state-of-the-art hydrogen production facility,” said Howard Castle-Smith, Vice President–Tonnage Gases, Equipment, and Energy for Air Products in Europe and the Middle East. “This project enhances Air Products’ existing operations and pipeline network system in the Netherlands where we have a number of hydrogen facilities in the Rotterdam region supplying the refining and chemical industries. This new project demonstrates our commitment to a region which has made hydrogen a key to its continued development.”
Air Products’ hydrogen facility in Rotterdam will be built through the global alliance between Air Products and Technip. This alliance, which has built over 30 hydrogen production facilities, continues to provide the worldwide refining industry with competitive technology and world-class safety. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to “design-in” high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers. More information on this global alliance, which has been in place since 1992, can be found at: www.H2alliance.com
Linde Shines in India’s Booming Solar Industry 2009.11 November 11, 2009 – Reinforcing its position as India’s leading gas technology supplier to the photovoltaic (PV) industry, BOC India (BOCI), a member of The Linde Group, has won four new long-term industrial gas supply deals with large PV manufacturers, Moser Baer, Euro Multivision, Solar Semiconductor, and Indo Solar (formally Phoenix Solar).
Gases are critical to the production of solar cells, and can account for up to 20 percent of the total cost of thin-film silicon manufacturing. These significant deals for BOCI come at a time when India readies to unveil its first solar power target, pledging to boost output from near zero to 20 Giga Watts (GW) by 2020, as it firms up its national plan to fight global warming through the development of alternative energy sources and reduction of greenhouse gas emissions.
For Moser Baer’s first PV production unit in Greater Noida, India, BOCI has created one of the largest supply schemes for industrial gases for electronics manufacturing throughout South and East Asia. In addition to the on-site manufacturing of critical gases, BOCI’s partnership with Moser Baer includes a focus on employing technology solutions to optimize gas usage as well as India’s first on site Total Gas Management (TGM) service.
For Indo Solar’s first crystalline silicon PV cells manufacturing plant in India, and also in Greater Noida, BOCI has been selected as its exclusive supplier of bulk nitrogen, silane, and other specialty gases. BOCI will provide a full TGM service and also install the distribution and monitoring systems required for safe and reliable supply of these specialty gases to the manufacturing facility. In Phase One, Indo Solar will have an annual cell capacity of 160MW, which will ramp up by an additional 200MW in Phase Two (anticipated completion by end of 2009).
In Fab City Hyderabad, BOCI has been selected to pioneer the development of gas supply infrastructure in conjunction with the first large PV investment. Solar Semiconductor’s new crystalline silicon cell plant in Fab City has an initial capacity of 30 MW and plans to ramp up to 120MW by 2010. BOCI also plans to further expand its gas and chemical infrastructure in Fab City Hyderabad to support future investments.
Finally, in Gujarat BOCI is working with Euro Multivision Limited on the bulk and special gas supply to their new 40MW crystalline cell manufacturing facility in Kutch.
Air Liquide Starts-up Largest Carbon Monoxide Unit 2009.11 November 13, 2009 – Air Liquide has just commissioned the world’s largest carbon monoxide unit, handing it over to the customer, Saudi International Petrochemicals Company (Sipchem). This new carbon monoxide unit is located on the industrial complex of Jubail City, in eastern Saudi Arabia, near the Arabic Gulf. This project was awarded in 2006 to Air Liquide and Lurgi.
The carbon monoxide unit, designed and built by the Engineering and Construction teams of Air Liquide, will have a production capacity of 335,000 tonnes per year. The production of carbon monoxide calls upon the combination of very high temperature technologies (+ 1200°C) as well as very low cryogenic temperature (-190°C). Those two processes are mastered by the Group and will be integrated in this very large unit.
The carbon monoxide produced in the unit will primarily serve as feedstock for the production of acetic acid used for the production of Polyvinyl Acetate, which has applications in water-based paints, adhesives and in the processing of paper and textiles.
Airgas Acquires Tampa-Based Industrial Gases Company 2009.11 November 16, 2009 – Airgas, Inc. has acquired the assets and operations of Tri-Tech, a Tampa, FL-based distributor of industrial, medical, and specialty gases and related supplies. The acquired business, with 16 locations throughout Florida, Georgia, and South Carolina, generates approximate annual revenues of $31 million. Effective November 16, twelve of the acquired locations have been integrated into Airgas South, and four have been integrated into Airgas National Welders. Airgas South serves customers in Alabama, Georgia, Florida, eastern Mississippi and southern Tennessee, while Airgas National Welders serves customers in the Carolinas, eastern Georgia, and southern Virginia. Airgas South and Airgas National Welders are among 12 regional companies within Airgas’ distribution business.
“We are thrilled to welcome more than 110 Tri-Tech employees to the teams at Airgas South and Airgas National Welders,” said Airgas Executive Vice President and Chief Operating Officer Mike Molinini. “This is a well-run business with a reputation for exceptional customer service.”
John Sheehan, President of Tri-Tech, founded Air-Tech in 1990 with two locations in west-central Florida. Sheehan has 29 years of industry expertise, and now joins the management team at Airgas South.
Praxair to Build and Operate Hydrogen and Nitrogen System in India 2009.11 November 17, 2009 – Praxair, Inc. has received a major order from the Indian Oil Corporation Ltd. for the long-term supply of hydrogen and nitrogen gases to its new 300,000 barrels per day greenfield oil refinery which is being built at Paradip, Orissa on the eastern coast of India. Praxair will build a 90 million standard cubic feet per day hydrogen plant and a 500 tons per day nitrogen plant at the Paradip refinery.
Start-ups of the plants are scheduled for the first quarter of 2012 when the refinery will be commissioned. IndianOil's refinery will use the hydrogen to enable the processing of various crude oil slates and the production of low sulfur, clean fuels.
"This business agreement with Praxair is consistent with IndianOil's strategy to outsource non-core operations to experienced global partners who can bring value to our refinery projects through their operational expertise," said IndianOil's Director (Refineries) Mr. B.N. Bankapur. "We are delighted to be partnering with IndianOil on its new, prestigious refinery project at Paradip," said Mr. Joe Cappello, President of Praxair Asia. "Using state-of-the-art technology, Praxair is committed to playing a significant role in helping the refining industry globally to meet increasingly stringent environmental regulations for transportation fuels today and in the future," Mr. Cappello added.
IndianOil is augmenting its existing refining capacity by setting up the 300,000 barrels per day refinery at Paradip at a cost of about $6.5 billion. This will help meet the burgeoning energy demands of primarily the Indian domestic market and partly the South-East Asian export market expected in the near future.
Air Liquide Invests in Alaska to Double Its Production Capacity 2009.11 November 19, 2009 – Air Liquide will double its liquid oxygen and nitrogen capacity in Alaska with a new production unit in Anchorage, scheduled to start in the fall of 2010.
Air Liquide has been the leading provider of industrial gases in the state of Alaska for 41 years. Today, 75 employees serve customers in the petrochemical, refining, and mining sectors, ensuring the production and distribution of oxygen, nitrogen, and acetylene gases as well as providing various equipment.
Air Liquide drivers cover over 700 thousand miles per year delivering gases in Alaska.Air Liquide also produces and distributes medical gases essential to healthcare, supplying all hospitals and many remote medical clinics in the state. The reliable production and distribution of industrial and medical gases is particularly important to Alaskans, due to the state’s geography and distribution challenges.
Taylor-Wharton International, LLC Begins Debt Restructuring 2009.11 November 23, 2009 – Taylor-Wharton International, LLC will undertake a voluntary financial restructuring. The Company has reached an agreement in principle with the holders of its mezzanine senior subordinated secured notes and holders of its first lien notes to significantly improve capital structure and create financial flexibility.
TWI intends to begin restructuring with a pre-arranged reorganization plan, which has been filed with the Court. Voluntary Chapter 11 petitions have been filed in the United States Bankruptcy Court for the District of Delaware. Operations outside of the United States were not included in the filing.
Under the terms of the agreement, TWI’s debt obligations will be reduced by more than 50 percent. Additionally, upon emergence from Chapter 11, the Company will receive improved terms from its lenders and access to new financing, including a $25 million credit facility. The agreement also calls for the investment of new equity capital by the mezzanine holders and the Company’s financial sponsors, in support of the overall refinancing strategy.
In addition to improved terms and a cash infusion from its Sponsors, the Company has received commitments for up to $20 million in debtor-in-possession (DIP) financing from a group of lenders led by GE Capital that will be used to fund post-petition operating expenses and to meet its obligations to employees, customers, and suppliers.
TWI expects operations to continue as usual during the restructuring process. The Company plans to emerge from Chapter 11 on an accelerated basis. “Because Taylor-Wharton International already has a restructuring agreement in place with our lenders, the Company expects to achieve plan confirmation and successfully complete the financial restructuring by the end of February,” said Bill Corbin, Chairman and Chief Executive Officer of TWI. “We believe this financial restructuring is a necessary and positive step to re-align TWI’s capital structure with current business operations. The commitment from our lenders and the injection of new equity represent important votes of confidence in our business, our people and our prospects. TWI will emerge from this restructuring as a stronger Company with a more sustainable capital structure that reflects the current economic realities.”
In conjunction with the filing, TWI filed a number of customary “first day” motions to support its employees, customers, and suppliers throughout the financial restructuring process. The Company has asked for authority to continue honoring all current customer programs and has also requested authority to pay trade creditors under a variety of motions so that it can assure customers of an uninterrupted stream of product and eliminate any concerns they may have regarding the integrity of the supply chain. The various forms of authority requested only extend to trade vendors, some of which will be paid in the ordinary course and some of which will be paid in full once the Plan of Reorganization is confirmed, depending on the classification of their allowed claim. During the Chapter 11 process, suppliers will be paid in full for all goods and services provided after the filing date as required by the Bankruptcy Code.
Air Products, Shell Contract Will Expand Pipeline System 2009.11 November 30, 2009 – Industrial gases company and global hydrogen provider Air Products has signed a long-term agreement to supply hydrogen to Shell for one of the new units at its refinery complex near Rotterdam, the Netherlands. Air Products will supply Shell the hydrogen via pipeline and add an over six-mile extension to its existing over 80 mile pipeline system. The supply is due to be on-stream in 2011.
The Shell facility pipeline extension will be connected to Air Products’ recently announced new world-scale hydrogen production plant in Rotterdam, planned to be on-stream in mid-2011. The new hydrogen plant will feature technology advancements to maximize facility energy efficiency and emissions reductions.
Air Products has been active in Rotterdam since the early 1970s and has continuously expanded and invested. It operates production facilities in Botlek, Pernis, Chemiehaven and Europoort and manages an extensive network of industrial gas pipelines.
