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Air Products and Linde North America Form Joint Venture

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Air Products and Linde North America form partnership

On June 15, 2017, Air Products and Chemicals (APD) and Linde North America announced a new joint venture called East Coast Nitrogen. The joint venture will have a capital investment of $60 million. However, the companies didn’t disclose how much each of them is investing. A new facility will be built in Glenmont, New York. The new facility will produce liquid nitrogen, liquid oxygen, and liquid argon. The new facility is expected to go commercial by December 2018.

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Marie Ffolkes, APD’s president of Industrial Gases Americas, said, “There are several market reasons why this investment in a new and larger facility, and the formation of the JV make strategic sense for Air Products. The plant will use our latest technology and its capabilities will strengthen Air Products’ presence in the Albany, New York area. The facility will also provide a higher production capacity for all three products to be produced at the location and will put us in a position to better serve our customers and their future growth.”

APD stock performance for week ended June 16, 2017

APD stock returned -0.2% for the week and closed at $145.51. However, it still managed to outperform the Materials Select Sector SPDR ETF (XLB), which returned -0.7% for the same period. Despite a decrease in stock prices, APD traded 3.7% above the 100-day moving average price of $140.28. APD’s 52-week low is $124.10, while its 52-week high is $150.45.

Investors can indirectly hold APD by investing in XLB, which invests 4.7% of its portfolio in APD. The top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), which have weights of 11.9%, 11.8%, and 8.5%, respectively, as of June 16, 2017.

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