Yahoo Finance Linde (LIN) to Increase ASU Production Capacity in Florida
Linde Plc LIN plans to increase its production capacity at its Air Separation Unit (“ASU”) in Florida to address the evolving needs for industrial gases.
The company aims at a 50% increase in production at its Mims site to supply its contracted customers across several markets, which include aerospace, healthcare and food processing.
Linde’s primary products in industrial gases include oxygen, which is being used for life support in hospitals. The oxygen segment is expected to hold the largest global industrial gases market due to its increasing use in wide industrial applications. Moreover, oxygen supplies were put under stress at hospitals in Florida last month due to the rise in COVID-19 cases. This resulted in higher demand for industrial gases in the country.
The company’s latest plan follows a similar project in 2020, wherein it doubled the production capacity of Mims through the start-up of an additional ASU. Linde established the plant in response to the rapidly increasing demand for space launch activities. The plant also served the rising demand from healthcare, manufacturing, food processing and water-treatment customers in the area.
Linde has a solid record of safely and reliably supplying its customers in Florida. The latest project, which is expected to complete in 2023, will strengthen the company’s supply reliability in the region. It aims to increase the supply of its industrial gases to serve the growing demand for space launch propellant and from the broader economy throughout the region.
Company Profile & Price Performance
Headquartered in Guildford, UK, Linde is a leading global industrial gas and engineering company.
Shares of the company have outperformed the industry in the past six months. The stock has gained 15.2% against the industry’s 1.1% decline.
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Zacks Rank & Stock to Consider
Linde currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the basic material space are Avient Corporation AVNT, currently sporting a Zacks Rank #1 (Strong Buy), and The Chemours Company CC and Arkema SA ARKAY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avient’s earnings for 2021 are expected to rise 17.3% year over year.
Chemours’ earnings for 2021 are expected to rise 7.6% year over year.
Over the past 60 days, the Zacks Consensus Estimate for Arkema’s 2021 earnings has been raised by 25%
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