Metal processor Worthington Industries
(WOR - Snapshot Report
) has launched its newly designed cryogenic liquid cylinders. Approved by The U.S. Department of Transportation (DOT), these cylinders are used to store liquid nitrogen, oxygen, argon and carbon dioxide for industrial gas markets.
The new cryogenic liquid cylinder line is available with capacities ranging from 180-265 liters net and includes proprietary digital and mechanical gauges. Worthington has designed these cylinders based on customer insights factoring in issues with refurbishment costs, dysfunctional fluid level gauges and overall handling and transport experienced at industrial gas plants.
Key features of the cylinder line include the industry's first liquid cylinder vacuum sensor, proprietary gauge geared to accurately alert the customer of liquid levels, redesigned customer and distributor interfaces and optional customized name plate and raised handling ring for easier valve access.
Worthington noted that patents are pending on new product features to help customers diagnose cylinder performance issues, thereby cutting unnecessary refurbishment costs. Several cryogenic cylinders have been misdiagnosed and are sent to refurbishment for vacuum issues. These cylinders can often be repaired at the gas plant.
Worthington’s vacuum sensor has been designed to help customers better diagnose performance issues and avoid the related $300-$800 refurbishment cost per trip that can occur several times in a cylinder's life. A new production area at the company’s Westerville, OH, facility has been dedicated to make the cryogenic liquid cylinders.
The cryogenic liquid cylinder line represents a part of Worthington's multi-year growth strategy. These cylinders add new capabilities in alternative fuels and energy while providing opportunities for synergies within existing industrial gas market. The company expects that this product will differentiate itself from currently available options on the market.
The launch of the new cylinder line comes after Worthington’s recent purchase of a 75% stake in Turkey-based leading liquefied natural gas (LNG) company ARITAS. The acquisition provided Worthington significant opportunity to expand its LNG and cryogenics businesses globally. The added LNG and cryogenic capabilities through the acquisition coupled with the new cylinder line is expected to enable the company to offer a unique product range to global markets.
Worthington is a Zacks Rank #2 (Buy) stock.