Air Products and Chemicals, Inc. APD has entered a definitive agreement with PG Cold Energy 1 Sdn. Bhd. to design, build and operate the country’s first LNG-based air separation unit (ASU), expanding Air Products’ production capabilities in Southern and Central Malaysia. The project, located at the Pengerang LNG regasification terminal in Johor, is expected to come online by early 2027.
The facility will produce more than 600 tons per day of liquid oxygen, nitrogen and argon. The company plans to supply the merchant market and meet rising demand from the electrical and electronics, petrochemical, aerospace and manufacturing sectors. This adds to APD’s LNG-based ASUs in Asia.
The project is particularly beneficial for its energy efficiency. It will use cold energy generated during the LNG regasification process to liquefy air at low temperatures, reducing energy consumption and production-related emissions. This should enable Air Products to provide customers with lower-emission industrial gas solutions.
The investment also reinforces the company’s long-standing relationship with PETRONAS Gas Berhad. With operations in Malaysia dating back to 1974, Air Products has established a broad network of production facilities and depots across the country. The new ASU is expected to enhance Air Products’ supply capabilities, strengthen its position in key industrial hubs and support long-term growth in Malaysia’s expanding manufacturing sectors.
APD shares have gained 5.8% in the past year against the industry’s 0.3% decline in the same period.
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APD’s Zacks Rank & Other Key Picks
APD currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. RS, Axalta Coating Systems Ltd. AXTA and Cabot Corporation CBT.
RS, AXTA and CBT carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.23 per share, indicating a 62.9% year-over-year increase. RS’shares have gained 41.8% over the past year.
The Zacks Consensus Estimate for AXTA’s fiscal 2026 earnings is pegged at $2.63 per share, indicating a rise of 5.62% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 6.45%.
The Zacks Consensus Estimate for CBT’s current fiscal-year earnings is pinned at $6.53 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 4.56%. CBT’sshares have gained 5.8% over the past year.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
