Air Products and Chemicals, Inc. APD has announced that it will construct and operate two nitrogen plants in the Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park in Penang, Malaysia. The company has been a prominent provider of industrial gases globally and has been serving Malaysia for almost five decades. Additionally, the company intends to expand its pipeline network in these regions. This investment in increased capacity and infrastructure will reinforce Air Products' strong position in Northern Malaysia and its ability to fulfill the demands of the market.
The company has established two cutting-edge air separation units in Prai Industrial Area, which has enabled it to maintain a strong presence in Northern Malaysia. Its comprehensive pipeline network is present across several key industrial areas, including Bukit Minyak Industrial Area, Penang Science Park, Batu Kawan Industrial Park and Valdor Industrial Area. In response to increasing customer demand, the company will construct a new nitrogen plant at its greenfield site in the Batu Kawan Industrial Park, where it will be integrated into its existing pipeline infrastructure.
To meet the rising demand from the electrical, electronics and other manufacturing sectors, the company will construct a new nitrogen plant in the Bayan Lepas Free Industrial Zone. This will be in addition to the nitrogen plant that Air Products brought online in the zone in 2021.
The company provides a more cost-effective solution for customers, particularly those with high-volume requirements, by transforming hauled-in liquefied nitrogen into gaseous nitrogen supply through pipelines. This conversion not only enhances sustainability but also enables customers to lessen their carbon emissions.
Shares of Air Products have gained 12.9% over a year against a 2.7% fall recorded by its industry.
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Air Products, on its first-quarter call, said that it expects its adjusted earnings to be in the range of $11.20-$11.50 per share for fiscal 2023. The company sees its adjusted earnings for the fiscal second quarter to be between $2.50 and $2.70. For fiscal 2023, the company expects its capital expenditures to be in the range of $5-$5.5 billion.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
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