Profile: Air Products and Chemicals Inc (APD.N)
18 Dec 2013
Air Products and Chemicals, Inc. (Air Products) serves energy, electronics, chemicals, steel, and manufacturing customers globally with a portfolio of products, services, and solutions that include atmospheric gases, process and specialty gases, performance materials, equipment, and services. The Company is a supplier of hydrogen and helium and operates in markets, such as semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives. The Company operates in four business segments: Merchant Gases, Tonnage Gases, Electronics and Performance Materials, and Equipment and Energy. In June 2011, the Company acquired Poly-Flow Engineering LLC. In November 2011, Fluor Corporation acquired Goar, Allison & Associates, a unit of Air Products. In February 2012, the Company acquired Schluchtern, Germany-based ROVI Cosmetics International GmbH. In March 2012, it acquired advanced adsorption technology assets for its Generated Gases product lines from Xebec Adsorption, Inc. (Xebec). Xebec has also entered into a license agreement with Air Products allowing Xebec to continue to sell its systems, primarily in the biogas, natural gas and associated gas purification markets.
Merchant Gases sells atmospheric gases, such as oxygen, nitrogen, and argon (primarily recovered by the cryogenic distillation of air); process gases, such as hydrogen and helium (purchased or refined from crude helium); medical and specialty gases, and certain services and equipment, throughout the world to customers in many industries, including those in metals, glass, chemical processing, food processing, healthcare, steel, general manufacturing, and petroleum and natural gas industries. Merchant Gases includes products, such as liquid bulk, packaged gases, small on-site plants and healthcare products. Liquid bulk product is delivered in bulk (in liquid or gaseous form) by tanker or tube trailer and stored, usually in its liquid state, in equipment designed and installed by the Company at the customer’s site for vaporizing into a gaseous state as needed. The Company operates packaged gas businesses in Europe, Asia, and Brazil. In the United States, the Company’s packaged gas business sells products for the electronics and magnetic resonance imaging (principally helium) industries. Customers receive product through small on-sites (cryogenic or noncryogenic generators), either by a sale of gas contract or the sale of the equipment to the customer. Customers receive respiratory therapies, home medical equipment, and infusion services. These products and services are provided to patients in their homes, primarily in Europe.
Tonnage Gases provides hydrogen, carbon monoxide, nitrogen, oxygen, and synthesis gas (a hydrogen-carbon monoxide mixture) principally to the energy production and refining, chemical, and metallurgical industries worldwide. Gases are produced at facilities located adjacent to customers’ facilities or by pipeline systems from centrally located production facilities and are generally governed by contracts with 15- to 20-year terms. The Company is a provider of hydrogen, which is used by oil refiners to facilitate the conversion of heavy crude feedstock and lower the sulfur content of gasoline and diesel fuels to reduce smog and ozone depletion. The energy production industry uses nitrogen injection for enhanced recovery of oil and natural gas and oxygen for gasification. The metallurgical industry uses nitrogen for inerting and oxygen for the manufacture of steel and certain nonferrous metals. The chemical industry uses hydrogen, oxygen, nitrogen, carbon monoxide, and synthesis gas as feedstocks in the production of many basic chemicals. The Company delivers product through pipelines from centrally located facilities in or near the Texas Gulf Coast; Louisiana; Los Angeles, California; Alberta, Canada; Rotterdam, the Netherlands; United Kingdom; Western Belgium; Ulsan, Korea; Nanjing, China; Tangshan, China; Kuan Yin, Taiwan; Singapore; and Camacari, Brazil. The Company also owns less than controlling interests in pipelines located in Thailand and South Africa. Tonnage Gases also includes a Polyurethane Intermediates (PUI) business. At its Pasadena, Texas facility, the Company produces dinitrotoluene (DNT), which is converted to toluene diamine (TDA). Most of the Company’s TDA is sold under long-term contracts with raw material cost and currency pass-through to a small number of customers.
Electronics and Performance Materials
Electronics and Performance Materials employs applications technology to provide solutions to a range of global industries through chemical synthesis, analytical technology, process engineering, and surface science. This segment provides the electronics industry with specialty gases (such as nitrogen trifluoride, silane, arsine, phosphine, white ammonia, silicon tetrafluoride, carbon tetrafluoride, hexafluoromethane, critical etch gases, and tungsten hexafluoride) as well as tonnage gases (primarily nitrogen), specialty chemicals, services, and equipment for the manufacture of silicon and compound semiconductors, thin film transistor liquid crystal displays, and photovoltaic devices.
Electronics and Performance Materials also provides performance materials for a range of products, including coatings, inks, adhesives, civil engineering, personal care, institutional and industrial cleaning, mining, oil refining, and polyurethanes. Its principal performance materials include polyurethane catalysts and other additives for polyurethane foam, epoxy amine curing agents and auxiliary products for epoxy systems, specialty surfactants for formulated systems, and functional additives for industrial cleaning and mining industries. The Electronics and Performance Materials segment uses a variety of raw materials, including silane, amines, alcohols, epoxides, organic acids, and ketones.
Equipment and Energy
Equipment and Energy designs and manufactures cryogenic equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction (LNG), and helium distribution (cryogenic transportation containers), and serves energy markets in a variety of ways. Equipment is sold globally to customers in the chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing industries. The segment also provides a range of plant design, engineering, procurement, and construction management services to its customers.
Energy markets are served through the Company’s operation and partial ownership of cogeneration and flue gas desulfurization facilities. In addition, we are developing hydrogen as an energy carrier, waste-to-energy facilities to produce electricity, carbon capture technologies for a variety of industrial and power applications, and oxygen-based technologies to serve energy markets. The Company owns and operates a 49 megawatt fluidized-bed coal and biomass-fired power generation facility in Stockton, California, and operates and owns a 47.9% interest in a 112 megawatt gas-fueled power generation facility in Thailand. The Company also operates and owns a 50% interest in a flue gas desulfurization facility in Indiana.
The Company competes with with L’Air Liquide S.A, Linde AG, Praxair, Inc, Airgas, Inc., BASF Corporation and Bayer AG.
Air Products and Chemicals Inc
7201 Hamilton Boulevard
ALLENTOWN PA 18195-1501
Company Web Links
- CEO to retire as Air Products strikes deal with Ackman
- UPDATE 2-CEO to retire as Air Products strikes deal with Ackman
- Air Products to look for new CEO, add 3 independent directors
- Air Products to look for new CEO, add 3 independent directors
- REFILE-Bankers blindsided by Air Products' activist upset