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Linde Expands Industrial Gas Capacity to Support U.S. Space Sector

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Key Takeaways

  • LIN will build a new air separation unit in Texas and expand gas capacity at its Florida facility.
  • These projects support long-term contracts to supply liquid oxygen and nitrogen for rocket launches.
  • LIN backed about 100 rocket launches in 2024 and remains a key player in space exploration efforts.

Linde plc (LIN - Free Report) , a leading global producer of industrial gases, announced plans to construct and operate a new air separation unit in Brownsville, TX. An air separation unit (ASU) can separate the different components of air, such as nitrogen and oxygen. These gases are used in various industrial processes. Additionally, Linde announced plans to boost industrial gas capacity at its ASU in Mims, FL.

The company’s plans to build a new ASU in Texas and increase gas capacity at its existing facility in Florida are aimed at strengthening its position as a leader within the growing U.S. space industry. LIN’s investments toward these ASUs are related to long-term agreements for the supply of liquid oxygen and nitrogen, supporting rocket launches.

The company stated that its new ASU in Texas is scheduled to commence operations in the first quarter of 2026. This unit is slated to supply liquid oxygen, nitrogen and argon to LIN’s customers involved in space exploration. On the other hand, the expansion at the ASU in Mims, FL, is expected to start operations in the first quarter of 2027. The additional capacity should enable the production of critical liquid oxygen and nitrogen, aimed at powering rocket launches from space facilities that lie close to LIN’s ASU.

Linde has been involved with the U.S. space program for almost 60 years. The company’s involvement with space exploration and operations dates back to the Apollo program in the 1960s, where it supplied liquid oxygen. It plays a crucial role in modern-day space programs as well. LIN’s supply of rare gases is utilized in modern satellite propulsion systems. This underscores the company's position as a frontrunner in the space exploration domain. Notably, in 2024, LIN supported around 100 successful rocket launches. 

LIN’s Zacks Rank & Key Picks

Currently, LIN carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials sector are B2Gold Corp. (BTG - Free Report) , MAG Silver Corp. (MAG - Free Report) and Kinross Gold Corporation (KGC - Free Report) , each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

B2Gold is a Canada-based gold-producing company. The company operates three mines, namely the Fekola Mine in Mali, the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia, along with a portfolio of other exploration assets in Colombia, Mali and Finland. The Zacks Consensus Estimate for BTG’s second-quarter earnings is pegged at 12 cents per share, indicating a 100% increase from the prior-year reported figure.

MAG Silver is involved in the acquisition, exploration and development of mineral projects across Canada, the United States and Mexico. The company primarily focuses on advancing precious-metals projects throughout the Americas. The Zacks Consensus Estimate for MAG’s second-quarter earnings is pegged at 29 cents per share, indicating a 38.1% increase from the prior-year reported figure.

Kinross Gold is one of the top 10 gold mining companies in the world. The company is focused on the acquisition, exploration, and development of gold mines primarily located in the United States, Brazil, Chile, Canada and Mauritania. Kinross has a strong production profile and a promising pipeline of exploration and development projects. The Zacks Consensus Estimate for KGC’s second-quarter earnings is pegged at 27 cents per share, indicating a 92.86% increase from the prior-year reported figure.

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