Air Products Oxy-fuel for Chinese Copper Makers - Analyst Blog

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Air Products ( APD ) said that it has entered into agreements with a host of Chinese recycled copper makers to offer its oxy-fuel solution. The industrial gas giant has landed contracts with more than 20 manufacturers and around half of its solutions are already in operation.

Air Products' oxy-fuel solution for recycled copper, which includes the supply of oxygen, a patented oxy-fuel burner and fully integrated control equipment, helps to enhance productivity and material qualities vis-à-vis legacy air-fuel technologies. It also helps in reducing harmful emissions and energy consumption and fuel costs throughout the operation.

Tianjin, Northern China-based leading scrap copper recycling company Dashan Copper became the first to use Air Products' oxy-fuel solution in China. The use of the solution has resulted in roughly two-thirds savings in fuel consumption, lower emissions and increased operational flexibilities.

Moreover, leading scrap metal recycling company Jinlong Group, which is based in Hunan Province, Southern China, has seen a meaningful reduction in fuel consumption and nitrogen oxide emissions following the use of Air Products' oxy-fuel solution.

Air Products, which is among the first multinational gas companies to enter China, has been catering the nation's strategic markets for more than 25 years. The company remains committed to work with Chinese copper makers to boost the sustainable growth of the industry.

Recycled copper makers in China are faced with challenges of increasing raw material costs and tough environmental regulations in their pursuit to stay competitive and attain sustainable growth. The recycling and re-use of non-ferrous metals has been seen as a high-growth industry in China to increase productivity while cutting waste and emissions. Recycled copper will account for 40% of copper production in China by 2015, according to the country's five year plan for non-ferrous metals industry.

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 #3 (Hold) stock.

Other companies in the chemical space worth considering include Methanex Corp. ( MEOH ), Northern Technologies International Corp. ( NTIC ) and The Dow Chemical Co. ( DOW ). While both Methanex and Northern Technologies carry a Zacks Rank #1 (Strong Buy), Dow Chemical holds a Zacks Rank #2 (Buy).



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

DOW CHEMICAL (DOW): Free Stock Analysis Report

METHANEX CORP (MEOH): Free Stock Analysis Report

NORTHERN TECH (NTIC): Free Stock Analysis Report

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



This article appears in: Investing , Business , Stocks

Referenced Stocks: APD , DOW , MEOH , NTIC

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