Gulf Cryo has announced a significant investment acquiring shares in Tyczka Air Austria, part of the Tyczka Group, becoming minority partner.
Gulf Cryo and the Tyczka Group will bring together technical, commercial, and financial resources into Tyczka Air Austria to create a well-positioned industrial gas company in a highly industrialised area. The joint efforts of both companies will overtime substantially enhance the company’s growth in the liquid air gases market in Austria and Germany.
Last year, construction work for a new generation air separation plant (ASU) began at Tyczka Air Austria located at the industrial park Braunau/Neukirchen in Austria and commemorated with a ‘ground-breaking’ ceremony.
The construction work and pre-signing of customers remain ahead of the original schedule with an anticipated plant commissioning in the 4th quarter of 2014.
The air separation plant is expected to have a daily production capacity of approximately 225 tonnes of industrial gases per day, primarily separating air into its pure components –nitrogen, oxygen, and argon. On completion, over €20m ($27m) will have been invested in the project. The ‘cold box’, which is at the core of the ASU, was installed in April and with a height of around 60 metres, has become the new landmark of the industrial park Braunau / Neukirchen.
Tyczka Air Austria will be able to leverage and benefit from the unique capabilities of both organisations. With Gulf Cryo’s expertise and long operating history of air separation units combined with the Tyczka Group’s extensive experience and knowledge of local markets, it is hoped Tyczka Air Austria will become a formidable competitor in the region.
Amer Huneidi, Chairman of Gulf Cryo, commented, “I am very excited about working closely with Tyczka management team in making Tyczka Air Austria a long term success and confident that a similar history of corporate entrepreneurialism can deliver substantial benefits to both shareholders and customers.”
“We look forward to our cooperation with Gulf Cryo in the operation of the plant and the marketing of our products,” said Dr. Frank Götzelmann, Managing Director of Tyczka Group.
This investment into Austria expands Gulf Cryo’s footprint to 13 countries and was its first venture in Europe – before the recent business investment in Turkey.
Amer concluded, “Securing a foothold in Europe, is an exciting development for Gulf Cryo which has historically focused on the Middle East and more recently North Africa. Over the last three years we have undertaken a major capital and acquisitions spend and made aggressive investment decisions to expand into new territories with important moves into Saudi Arabia, Oman, Bahrain, Egypt, Iraq, and Turkey. We now have a clear objective to be a solid and profitable player in the Austrian and German industrial gases market.”
The news was announced in June.