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Air Products (APD) New Cryogenic Nitrogen Plant is On-Stream

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Air Products and Chemicals, Inc. (APD - Free Report) recently announced that its first cryogenic nitrogen facility in the Bayan Lepas Free Industrial Zone, Penang, Northern Malaysia, has been brought on-stream. The new plant will expand the company’s production capacity and help serve the growing demand for electrical and electronics (“E&E”) and other manufacturing industries.

With this investment, the company will be better positioned in the industrial zone and Penang to support the thriving E&E industry, which is key to growth of Malaysia’s industrial development. Air Products aims to grow with its customers along the digitalization and innovation journey to provide safe, reliable and efficient solutions and service.

Air Products’ total solutions, including gas supply, application solutions and equipment help electronics packaging and assembly manufacturers to meet the growing demand for latest generation of semiconductors.

Air Products already has an established leading position in Northern Malaysia. Its two air separation units in Penang along with an extensive pipeline provide strong and highly-reliable gas supply to its customers.

Shares of Air Products have gained 1.8% in the past year compared with 19.2% rise of the industry.

Air Products’, in its first-quarter fiscal 2021 call, stated that it is confident in its profitable growth strategy of delivering innovative solutions for energy and environmental challenges despite the global economic uncertainty. It expects to meet customers’ and countries’ target for achieving cleaner and more sustainable solutions with its strong portfolio.

The company is expecting good opportunities in gasification, carbon capture and hydrogen for mobility. It expects to continue to develop and invest in strategic opportunities to drive growth for decades to come.

 

Zacks Rank & Key Picks

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 154.2% in a year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BHP has an expected earnings growth rate of 62.3% for the current fiscal. The company’s shares have gained around 36% in the past year. It currently holds a Zacks Rank #2.

Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 44.5% in the past year. It currently sports a Zacks Rank #1.

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