Praxair, Inc. and certain affiliates are notifying bulk gas and medical gas customers in the United States and Puerto Rico of price increases:
- Up to 20% for nitrogen, oxygen, argon and hydrogen
- Up to 10% for helium
- Up to 15% for facility fees
Price adjustments may be higher or lower in accordance with individual contract provisions and will be effective Jan. 1, 2016, or as contracts permit.
These adjustments are in response to rising costs and will support continued investments in capacity, reliability and efficiency of Praxair operations.
Ongoing price increases
These latest price increases from Praxair come two months after the company announced an increase of 15% for carbon dioxide in October, and after Chairman, President and CEO Stephen F. Angel told investors Oct. 29 on the company’s Q3 2015 conference call, ”The first order of business is to continue to optimize the base business. Continued price realization is an important part of that, and most businesses are delivering positive price.”
“Every year, we find new sources of productivity that enable us to sustain our performance and I’m confident that we will continue to do that going forward. And it is the combination of price and productivity that enables us to continue to grow operating profit faster than our top line.”
In September, Praxair announced the acquisition of Yara International’s CO2 business to strengthen its position in Europe, and Angel acknowledges this and the price increases as part of their overall plan: ”Our pending acquisition of Yara’s CO2 business in Europe is a good example of the type of acquisitions we’re targeting. In the next six to nine months, we expect to close more than $500 million of acquisitions, which will all meet our investment criteria.
“We have quite a few acquisition opportunities in front of us that will allow us to do two things. Number one, build density in key geographies like South America, Canada, Europe and the U.S; and number two, increase exposure to more resilient growth markets like food freezing.”