A couple of days after announcing a supply contract with Usha
) subsidiary in India, Praxair India Private Limited declared
expansion of its contract with JSW Steel Limited.
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According to the terms and conditions of the contract, agreed
upon by the two parties, Praxair India will supply gaseous
oxygen, nitrogen and argon to JSW's steel mill located in
Tornagallu, Bellary in the state of Karnataka. A new air
separation plant with oxygen production capacity of 1800 tons per
day will be built at Bellary's new unit and operated by Praxair.
In addition, nitrogen, roughly 1600 tons per day, and argon will
also be supplied to the customer by the new plant.
JSW Steel Limited, a part of the O.P. Jindal Group, is the
largest private sector steel manufacturer in India considering
its installed capacity. Praxair's association with JSW Steel is
about 15 years old. Currently, Praxair has plants with combined
installed production capacity of 6800 tons per day of oxygen
operating at JSW's steel mill in Bellary.
We find long-term growth prospects quite bright for Praxair, as
series of plant start-ups and contract wins signify the growing
preferences among customers for Praxair's world class technology,
high quality products and gas supply services.
Praxair is slated to release its fourth quarter 2012 financial
results on Jan 23. The stock currently bears a Zacks Rank #4
The current Zacks Consensus Estimate for the fourth quarter of
2012 is $1.38, representing a year-over-year increase of 1.2%.
Estimates for 2012 and 2013 are $5.57 and $6.16, reflecting
annual growth of 2.5% and 10.7%, respectively.
Other stocks in the industry performing better than the company
), both with a Zacks Rank #1 (Strong Buy), and
Air Products & Chemicals Inc.
) with a Zacks Rank #2 (Buy). Air Products & Chemicals is
slated to release its first quarter of fiscal 2013 results on Jan
23. The Zacks Consensus Estimate for the quarter is $1.29.