Air Products and Chemicals Inc. (APD - Free Report) has been awarded a major contract by Samsung Electronics to supply complete bulk-specialty gas and chemical-delivery systems to the latter’s memory fab in Xi'an, Shaanxi Province in western China.
As per the contract, Air Products will be required to design and construct a bulk specialty gas supply (BSGS) yard where the company's turnkey piping will connect the yard with the fab for distributing bulk specialty gases for the manufacturing process. The company will also supply its state-of-the-art specialty gas delivery equipment and specialty liquid chemical delivery equipment in the fab.
Samsung's operation in the Xi'an High Tech Zone represents one of the company’s largest overseas investments as well as one of the most advanced of its kind in China. The memory products produced by the fab in the Xi'an High Tech Zone will be widely used in portable devices such as smartphones, tablet computers, digital cameras and USB drives.
In 2012, Air Products received a major contract from Samsung to supply ultra-high purity nitrogen and other bulk gases, including oxygen, argon, hydrogen, helium and compressed dry air, to Samsung’s fab in the Xi'an High Tech Zone. Air Products has built several large air separation plants to support the needs of Samsung as well as the merchant market in the region.
With the present contract, Air Products can expand into the western region of China and establish its presence there. The company has established its new office in Xi'an High Tech Zone, which includes engineering and operational capabilities to support fast business growth in China.
Air Products currently carries a Zacks Rank #3 (Hold).
Other better-ranked stocks in the chemical industry include PPG Industries Inc. (PPG - Free Report) , Cytec Industries Inc. and The Dow Chemical Company , each with a Zacks Rank #2 (Buy).