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Linde (LIN) Signs Deal to Supply Industrial Gases to Arizona

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Linde plc (LIN - Free Report) entered an agreement with a world-leading semiconductor manufacturing company to supply industrial gases to a new manufacturing facility in Phoenix, AZ.

As part of the agreement, Linde will manufacture and operate a complex of on-site facilities to deliver ultra-high-purity gases like nitrogen, oxygen and argon to customers. The facilities are designed to fulfill the increased expectations of the semiconductor industry, while maintaining utmost reliability and operational efficiency.

Linde’s total investment will be $600 million, with the first plants and supporting infrastructure expected to commence in the second half of 2022. The company’s technology is designed to provide a secure and reliable supply of high-purity gases to the semiconductor facility, supporting the significant expansion of its customer's manufacturing capacity in the United States.

The demand for industrial gases is increasing across all end markets, with extensive use in advanced applications. Linde is leading the industry with clean hydrogen manufacturing technologies, indicating a significant scope for development in the long term.

The company’s industrial gases are used in various applications, including life-saving oxygen for hospitals, hydrogen for clean fuels, and high-purity and specialty gases for electronics manufacturing. Linde also provides advanced gas-processing solutions to support customer expansion, efficiency improvements and emission reductions.

In August, the company signed a similar agreement with Infineon Technologies to supply industrial gasesto the latter’s Villach unit in Austria. At the Villach site, Linde will build and operate a bulk storage system to supply additional industrial gases to meet the expanding requirements of Infineon.

Company Profile & Price Performance

Headquartered in Guildford, UK, Linde is a leading global industrial gas and engineering company.

Shares of the company have outperformed the industry in the past six months. The stock has gained 16.9% against the industry’s 1.7% decline.


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Zacks Rank & Stock to Consider

Linde currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the basic material space are Avient Corporation (AVNT - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Olin Corporation (OLN - Free Report) and The Chemours Company (CC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avient’s earnings for 2021 are expected to rise 17.3% year over year.

Over the past 60 days, the Zacks Consensus Estimate for Olin’s 2021 earnings has been raised by 35.6%, while that for Chemours Company has been raised by 14.2%.

In-Depth Zacks Research for the Tickers Above

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Olin Corporation (OLN) - free report >>

Linde plc (LIN) - free report >>

The Chemours Company (CC) - free report >>

Avient Corporation (AVNT) - free report >>

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