Air Products and Chemicals, Inc. (APD - Free Report) said that it has inked a long-term contract for the delivery of oxygen and nitrogen with Grupa Azoty Zaklady Azotowe Kedzierzyn S.A., which is part of Grupa Azoty, the second biggest producer of mineral fertilizers in the European Union. The contract will be valid till the end of 2035 and it also secures Air Products' position as a key supplier to major industries in Poland.
Per the contract, Air Products will supply oxygen and nitrogen gas to the Grupa Azoty Zaklady Azotowe Kedzierzyn plant, along with liquid oxygen and nitrogen to other customers in Poland. Industrial gases supplied by Air Products are utilized by Grupa Azoty Zaklady Azotowe Kedzierzyn S.A. for making ammonia, OXO alcohols and in auxiliary processes. Further, nitrogen is used to ensure the safety of production facilities on-site.
The project will be put into operation on the basis of an upgrade of Air Products' production facility which has a capacity of about 2,000 tons per day and is one of the largest of its kind in Poland. Along with signing of the deal, the Air Products production plant will also be modernized. This is of particular importance as the company uses a substantial amount of industrial gases.
Liquid nitrogen has many applications due to its unique properties. Its very low temperature allows it to be used for quick food freezing, ice cream manufacture and packaging of food products. It is also used for cryotherapy, production of plastic, metal processing and for the production of artificial snow as well as for various other applications.
Air Products’ adjusted earnings for fourth-quarter fiscal 2016 beat the Zacks Consensus Estimate, whereas sales missed the same. While adjusted earnings for fiscal 2016 rose year over year, revenues declined as a rise in volumes was more than offset by currency headwinds and lower energy pass-through in the year.
Air Products currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked companies in the chemicals space include Koppers Holdings Inc. (KOP - Free Report) , The Chemours Company (CC - Free Report) and Celanese Corporation (CE - Free Report) .
Koppers Holdings sports a Zacks Rank #1 (Strong Buy) and has an expected long-term growth of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours, with an expected long-term growth of 15.5%, also flaunts a Zacks Rank #1.
Celanese, a Zacks Rank #2 (Buy) stock, has an expected long-term growth of 8.8%.
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