Back to top

Image: Bigstock

APD's Cleveland Air Separation Facility Is Operational, Supply Begins

Read MoreHide Full Article

Key Takeaways

  • APD's Cleveland air separation facility is now operational and supplying regional customers.
  • The new plant will continue to serve the important merchant market base.
  • Cleveland is of great importance to APD since it caters to a diverse customer base.

Air Products and Chemicals, Inc. (APD - Free Report) announced that its new air separation facility in Cleveland, OH, is online, supplying to the onsite as well as regional customers. The new facility is owned and operated by the company and equipped with liquid production capability.

APD is also reinvesting in the location to extend the lifespan of an existing air separation unit and liquefier plant. The facility is engaged in the production of gaseous oxygen, gaseous nitrogen and liquid argon, which are supplied to an onsite customer under provisions of a long-term contract, while additional products are supplied to the regional merchant market.

This important merchant market base will be continually served through this new facility, enhancing APD’s strategic footprint. A significant onsite customer is also partaking in the investments being made at this location. The location becomes of great importance to APD since it caters to a diverse customer base.

The operations in Cleveland have been ongoing since the 1960s, strengthening its presence by supplying to varied industries including chemicals, food, electronics, primary materials, fabricated metals, health and medical, and utilities. The facility in Cleveland has also emerged as a liquid backup source to the onsite gaseous supply for several other Air Products' customers in the area, further enhancing its strategic value.

APD stock has gained 8.9% over the past year against the industry’s 17% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

APD’s Zacks Rank & Key Picks

APD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are The Mosaic Company (MOS - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Element Solutions Inc. (ESI - Free Report) . MOS sports a Zacks Rank #1 (Strong Buy) at present, while CRS and ESI carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 24.9% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’ shares have surged 79.6% in the past year.

The Zacks Consensus Estimate for ESI’s current-year earnings is pegged at $1.44 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.11%. ESI’s shares have gained 0.4% in the past year.

Published in