Air Products Oxy-Fuel for Taiwan Glass Maker - Analyst Blog

By Zacks Equity Research,

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Air Products ( APD ) said that it has deployed its integrated oxy-fuel solution for Taiwan-based water glass maker - Oriental Silicas Corporation ("OSC"). This makes OSC the first water glass producer in Asia to adopt this innovative combustion system.

The supply of integrated oxy-fuel solution includes the Cleanfire HRi oxy-fuel burners, a flow control skid for burners and the PRISM vacuum swing absorption oxygen generator. Air Products is also offering oxy-fuel combustion system commissioning and associated on-site consulting services to OSC.

The PRISM oxygen generator offers reliable oxygen utilizing a cutting edge technology which boosts efficiency and meaningfully cuts energy requirements, making it an economical source of oxygen.

OSC makes and markets precipitated silica (white carbon) to a vast spectrum of industries including tires, footwear, silicone rubber, food additives and battery separators. Moreover, it manufactures water glass, a critical element in the synthesizing process of precipitated silica.

The integrated oxy-fuel combustion system allows OSC to minimize emissions, improve product quality and enhance productivity in its water glass lumps production process, supporting growth of the company's business.  

Air Products offers oxy-fuel burners and technology, customized control systems, commissioning service, safety and site training, design and technical know-how, maintenance contracts and project management. It has already installed over 1,500 Cleanfire burners globally.

The integrated oxy-fuel solution provides glass makers with an array of benefits including roughly 80% reduction of nitrogen oxide emissions, more than 25% improvement in productivity, lesser capital expenses and 25%-60% savings in energy and improvements in glass quality.

Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support its results in fiscal 2014.

However, Air Products' tonnage gases business continues to face challenges due to maintenance outages. Moreover, higher energy costs pose a threat to margin expansion.

Air Products is a Zacks Rank #4 (Sell) stock.

Other companies in the chemical industry with favorable Zacks Rank include Methanex Corporation ( MEOH ), LyondellBasell Industries NV ( LYB ) and Olin Corp. ( OLN ), with all holding a Zacks Rank #2 (Buy).

AIR PRODS & CHE (APD): Free Stock Analysis Report

LYONDELLBASEL-A (LYB): Free Stock Analysis Report

METHANEX CORP (MEOH): Free Stock Analysis Report

OLIN CORP (OLN): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: APD , LYB , MEOH , OLN

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