Air Products’ Chairman, President, and Chief Executive Officer, Seifi Ghasemi, has today (September 18) announced a major company restructuring, with the goal of regaining industry leadership by providing excellent service to customers as the safest and most profitable industrial gas company in the world.
Ghasemi says he has already met and communicated with thousands of Air Products’ employees who are ready for change and are committing to a new corporate culture in order to meet this objective. This announcement came at the Credit Suisse Basic Materials Conference in New York, where Ghasemi outlined the company’s direction moving forward.
“Today we are taking a major step to restructure for future success. Air Products had the industry leadership position 20 years ago and maintains leading market positions in key regions. We will regain that leadership position by first reorganizing our Industrial Gases segment on a geographic basis, and move to a decentralized, simpler, and more efficient structure which creates true profit and loss accountability at many levels of the organization. The people at Air Products are ready to advance this great company, and I am excited by the significant opportunities in front of us,” says Ghasemi.
Effective at the start of Air Products’ 2015 fiscal year (October 1, 2014), the company will realign into seven reporting segments.
Industrial Gases will comprise four reporting segments (America; Europe, Middle East, and Africa or EMEA; Asia; and Global) and will include all air separation units (ASUs), hydrogen/HyCO plants (hydrogen, carbon monoxide, and syngas), and the current Merchant Gases segment. Reflecting greater regional focus, over 95 percent of current Industrial Gases revenues will be contained in the geographic segments of Americas, Asia, and EMEA.
Materials Technologies will include the Electronics Materials and Performance Materials businesses and will continue to operate as a global business.
Energy-from-Waste will include the two Tees Valley projects in the UK.
A Corporate segment will include two global businesses (LNG and helium containers) and corporate supporting functions.
To enable true profit and loss accountability, operations, distribution, and portions of other enabling functions will be integrated within Industrial Gases and Materials Technologies.
Accountable for implementing this new alignment and reporting directly to Seifi Ghasemi are: Corning Painter, Executive Vice President, Industrial Gases worldwide; Guillermo Novo, Executive Vice President, Materials Technologies; Scott Crocco, Senior Vice President and Chief Financial Officer; John Stanley, Senior Vice President, General Counsel, and Chief Administrative Officer; Pam Mattimore, Senior Vice President, Engineering and Manufacturing; David Taylor, Vice President, Energy-from-Waste; Jennifer Grant, Vice President and Chief Human Resources Officer; Kearney Klein, Vice President, Corporate Development; and Jeff Byrne, Vice President, HyCO and Large ASU Center of Excellence.
Additionally, Ghasemi says his employee meetings have given him an assurance that Air Products’ people are serious about adopting a new, rigorous company culture with a targeted focus and a team dedicated to safety (establishing a goal of zero accidents); simplicity (implementing a simple, empowered, accountable organization and work processes); speed (business and project execution with a sense of urgency); and self-confidence (in Air Products’ ability to achieve outstanding results by setting challenging performance targets).
Guidance for fiscal year 2015 will be discussed during Air Products’ year-end earnings call, to be scheduled in October 2014.