Air Products and Chemicals
On December 19, Air Products and Chemicals (APD) signed an agreement with N.V. Nederlandse Gasunie to supply three nitrogen plants. The contract is important for the Netherlands. The contract will help produce nitrogen according to the specifications needed for commercial and consumer applications within the country. However, Air Products and Chemicals didn’t disclose the financial aspects of the agreement.
The three plants will be built in Zuidbroek—near Groningen. The plants are expected to be completed by 2021. The plants are expected to produce 180,000 cubic meters per hour of nitrogen. The deal increases Air Products and Chemicals’ backlog.
Dr. Samir J. Serhan, Air Products and Chemicals’ executive vice president, said, “We are honored to be part of the energy solution for The Netherlands. We have had a relationship with Gasunie since the late 1980s at Ommen and are pleased to be called on again to provide the technology to meet the Country’s industrial gas requirements. We believe our selection for this very important project results from a combination of our market competitiveness, and the efficiency of design and the reliability of our nitrogen generation plants.”
The negative sentiments in the market caused Air Products and Chemicals stock to fall 0.43%. The stock closed at $154.10 on December 19. Investors looking to invest in Air Products and Chemicals indirectly could invest in the Materials Select Sector SPDR Fund (XLB), which has invested ~4.5% of its portfolio in Air Products and Chemicals. The fund also provides exposure to DowDuPont (DWDP), Linde (LIN), and Sherwin-Williams (SHW) with weights of 19.0%, 15.75%, and 5.84%, respectively, as of December 19.