Air Products has announced its intent to exit the Energy-from-Waste (EfW) business as of its second fiscal quarter.

This will allow the company to record a pre-tax charge in the range of $900 million to $1.0 billion in discontinued operations, primarily to write down assets associated with the EfW business to their realizable value.

Ghasemi comments

“We appreciate the hard work of our employees and contractors at the site, and certainly understand their disappointment in this decision. We are also disappointed with the outcome.”

Chairman, President and CEO Seifi Ghasemi explained the decision as helping Air Products focus on its core competencies:

“Air Products is focused on our core Industrial Gas business. We pushed very hard to make this new EfW technology work and I would like to thank the team who worked so diligently.”

“We appreciate the hard work of our employees and contractors at the site, and certainly understand their disappointment in this decision. We are also disappointed with the outcome.”

Costs too high

Air Products’ EfW projects were held in Tees Valley, UK, where recent analysis showed costs of design and operation to be too high to continue. The company has undergone numerous shifts the last several years, spinning off its Materials Technologies branch in 2015, for example, but this seems to have been more of a reactive move, and an opportunity for them to refine their focus on industrial gases.

Further details will be made public with Air Products’ 2Q16 quarterly earnings announcement, which is due April 28.