Taiyo Nippon Sanso Corporation (TNSC), together with a newly established joint venture (JV) in Thailand, has acquired Thai industrial gas producer Air Products Industry Co., Ltd. (API).

API achieved net sales of ¥4.2bn ($30m) in 2014 and has around 290 employees across its head office in Bangkok and business bases including Chonburi, Ayutthaya , and Lamphun.

The deal is seen as a further reinforcement of TNSC’s growing footprint in Southeast Asia, and the rapidly rising Thai market in particular.

Demand for industrial gas in Thailand is expected to continue growing, not only because the country – with a population of 68 million people – is one of the foremost markets in Southeast Asia, but also due to the industrial infrastructure the country is building, mainly in the automotive and electronics industries.


TNSC became a capital participant in API in the 1980s and through it, had been developing an industrial gas business in Thailand.

It then established the TNSC (Thailand) Co. Ltd JV in April 2015, of which TNSC holds a 49% shareholding (MHCB Consulting (Thailand) Co., Ltd. 48%, TISCO Tokyo Leasing Co., Ltd. 3%).

Now, TNSC will take management control of API, following a stock transfer agreement that TNSC concluded recently with shareholders in Thailand and the approval of API shareholders. The acquisition will result in its share ownership of API rising from 32% to 97%, including via the newly established JV scheduled for consolidation as a TNSC subsidiary.

Shareholders in TNSC will comprise TNSC (49%), TNSC Thailand (48%) and ‘other Thai individuals’ (3%).

TNSC is understood to be planning to expand the scope of API, going forward.

Until now, API’s main business had been that of a bulk producer of liquefied gases such as oxygen and nitrogen. By ‘aggressively infusing’ the group’s business resources, however, TNSC plans to expand the scope of API’s business and products as the Thai economy grows to maturity, and also take advantage of synergies with other group companies throughout Southeast Asia.


Coming soon

201506 gasworld june issue 121

Coming soon, an interview with TNSC – the undisputed market leader in Japan, and the fifth major player in the global industrial gases business.

TNSC is in the midst of a long-term plan to take its growth strategy to the next level, with expansion into new geographies and markets more important than ever before. Against this backdrop, the company has also been the subject of acquisition itself, with Mitsubishi Chemical Holdings Corp. (MCHG) securing a majority stake in TNSC late last year.

In the coming weeks, look out for an interview with TNSC President and CEO Yujiro Ichihara in the pages of gasworld magazine – exploring the company’s ongoing expansion plans and just what the investment of MCHG means to the group.