Industrial Gases Industry Research Report (2023 Edition)

【Answer 1】 LINDE [LIN.N] Linde, originating from Europe, is one of the world’s leading industrial gas and engineering companies, with sales of USD 27 billion (EUR 24 billion) in 2020. We are committed to fulfilling our corporate mission—advancing lean manufacturing globally through high-quality technologies, services, and solutions, while safeguarding our planet and promoting sustainable development. Linde serves diverse end markets, including aerospace, chemicals, food & beverage, electronics, energy, healthcare, manufacturing, and primary metals. Our industrial gases find broad applications—from medical oxygen used in hospitals, to ultra-high-purity and specialty gases for the electronics industry, and hydrogen for clean energy. In addition, Linde provides a suite of innovative gas processing solutions that support customers’ business growth, enhance operational efficiency, and reduce carbon emissions. AIR LIQUIDE [ONWF.L] Air Liquide, founded in France in 1902, is the world’s largest supplier of industrial and medical gases—and related services—with sales of EUR 10.4 billion in 2005. The company supplies oxygen, nitrogen, hydrogen, and other gases and associated services to numerous industries. It employs approximately 36,000 people and operates in over 70 countries. Built upon advanced technologies, Air Liquide delivers innovative solutions to its customers, upholding its commitment to sustainability and life protection—enabling the production of everyday essentials. Air Liquide is listed on the Euronext Paris stock exchange and ranked No. 354 on the Forbes Global 500 list in 2005, standing as a leader in the global gases industry. NIPPON SANSO [4091.T] Nippon Sanso Holdings Corporation, established in 1910, is Japan’s largest industrial gas and air separation equipment manufacturer—and ranks among the top five globally in the industrial gases industry. In September 2007, Nippon Sanso signed an agreement with the Changxing Island Lingang Industrial Park Management Committee to develop a large-scale industrial gas project, with a total investment of USD 72.25 million. In December of the same year, the company decided to establish its China headquarters on Changxing Island. In May 2008, Nippon Sanso successively founded Nippon Sanso (China) Investment Co., Ltd. and Dalian Changxing Island Nippon Sanso Gas Co., Ltd. on Changxing Island. Nippon Sanso (China) Investment Co., Ltd. became the first foreign-invested enterprise in Liaoning’s coastal economic belt to locate its China headquarters there. Chapter IV: Looking Ahead As China’s economy continues growing and industrialization and urbanization accelerate, the industrial gases industry—serving as a foundational sector supporting numerous critical industries—is poised for expansive future development. Technological Innovation: Technological innovation is viewed as the key driver sustaining the industrial gases industry. Going forward, continuous advancement in technology will enhance production efficiency, lower production costs, and simultaneously improve product quality and service standards—better meeting increasingly sophisticated demands across various sectors. Market Expansion and Application Extension: With the rapid growth of emerging industries such as integrated circuits, display panels, and LEDs, the industrial gases industry will gain broader market opportunities. Moreover, applications of industrial gases in environmental protection, clean energy, and healthcare are expected to expand further.

2023 China Industrial Gases Industry Research Report

【Answer 2】・ Characteristics: ・ For customers with large and relatively stable demand for air separation gases, companies typically construct plants at or near the customer’s location and supply products directly via pipelines. ・ Supply contracts usually span 15 to 20 years, incorporating minimum purchase requirements (“take-or-pay” volumes) and fixed pricing terms; billing occurs monthly, ensuring stable cash flow. ・ Trends: ・ Plant Scale-up: Large air separation units (ASUs) (>5,000 Nm³/h) demonstrate significantly lower unit energy consumption than smaller units (<1,000 Nm³/h); large ASUs also offer higher reliability, lower operation & maintenance costs, and longer mean time between failures. ・ Evolving Customer Mix: Demand is shifting from traditional sectors—such as steel and chemicals—to emerging fields like lithium-ion batteries and semiconductors. ・ Rising Outsourcing Ratio: On-site gas generation by third-party gas suppliers is growing faster than the industry average; the compound annual growth rate (CAGR) of third-party gas suppliers exceeds that of the overall industrial gases industry by two percentage points. Price competition in on-site gas generation is intense, compelling gas companies to rely on retail gas sales to bolster overall profitability. This diversified business model enhances the industrial gases industry’s flexibility and adaptability in responding to varying customer needs, market shifts, and competitive pressures. 2.3 Technological Development China’s industrial gases industry faces both challenges and opportunities in technological advancement. Compared with international peers, domestic industrial gas enterprises still lag somewhat in technical capabilities. To secure a firm foothold in global markets, Chinese firms must adopt a forward-looking perspective and continuously invest in technological accumulation. Below, we examine technological developments in China’s industrial gases industry across several key areas: ・ Gas Separation Technologies: Current mainstream gas separation methods include membrane separation, adsorption, fractional distillation, and high-efficiency chromatographic separation. Adsorption and fractional distillation are most widely applied, each offering distinct advantages and suitability for specific applications. Domestic enterprises need to strengthen R&D efforts in these areas to improve separation efficiency and scale-up production capacity. ・ Gas Purification Technologies: With the rapid development of high-end electronics, gas purification has become a pivotal force propelling progress in the industrial gases industry. Techniques—including chemical reaction, selective adsorption, cryogenic distillation, and palladium membrane purification—are continually being refined and deployed, enhancing gas purity to meet sector-specific requirements. ・ Gas Blending Technologies: Blending technologies are essential for satisfying specialized demands across multiple sectors. Common blending methods include gravimetric, pressure-ratio, and mass-flow-ratio techniques. China’s blending technologies are already widely applied in electronics, chemicals, pharmaceuticals, and other fields—but further improvements in blending accuracy and efficiency remain necessary. ・ Cylinder Treatment Technologies: Cylinder treatment is a critical step in ensuring gas quality. Domestic enterprises should draw upon internationally advanced cylinder treatment methods—such as high-pressure steam cleaning, mechanical polishing, and shot-blasting—to elevate their technical capabilities and guarantee gas quality. ・ Gas Filling Technologies: Gas filling is a vital safety-critical process. Domestic enterprises must intensify R&D and application of filling technologies to ensure safety throughout filling, storage, transportation, and usage. ・ Gas Detection Technologies: As gas applications broaden, gas detection technologies are gaining increasing importance. While China’s current gas detection capabilities meet certain basic needs, further enhancements are required—particularly in high-precision measurement and large-scale deployment.

Forbes J M & Co. LLP Purchases 39,118 Shares of Linde PLC

14 hours ago

Forbes J M & Co. LLP acquired 39,118 shares of industrial gas producer Linde PLC, valued at approximately $18.6 million. Analysts maintain a Buy rating based on strong quarterly revenues, though valuation remains a concern.

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