Tier One player Air Products has secured a contract to supply American chemical corporation Chemours Company FC, LLC with tonnage quantities of oxygen (O2), nitrogen (N2) and argon (Ar).
Under the terms of the agreement, of which financial details were not disclosed, Air Products will build, own and operate an air separation unit (ASU) in New Johnsonville, Tennessee.
The US corporation will supply Chemours with O2, N2 and Ar as well as compressed air and breathing air for its titanium dioxide (TiO2) production facility.
The new plant is expected to be commissioned in the third quarter of 2018.
Marie Ffolkes, President, Americas – Industrial Gases, stated, “This opportunity presents Air Products with an attractive geographic location in the south-eastern US where we can continue to build density and reliably supply our customers with industrial gases.”
The ASU will also produce liquid Ar for merchant customer end markets in the north and central US, with Ffolkes adding that the additional source “complements” Air Products’ existing supply capabilities in the Gulf Coast. “The Tenneessee location will assist Air Products in meeting expected growth in the Ar market in northern and central regions,” she confirmed.
In terms of revenue, the southeast region of the US is the largest in the country and accounted for sales of $4.7bn in 2015, according to gasworld Business Intelligence.
Toby Pimlott, Research Analyst, stated, “Air Products already operates a large ASU complex in Kingsport, Tennessee, and were the market leaders in the region for 2015. However, they will lose this market leadership position when the Air Liquide/Airgas acquisition begins to have a full impact on revenues over the next two years.”