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AWI Implements Onsite Liquid Business with own ASU in North America
On August 3, Air Water set up an ASU in Rochester, New York located in the northeast area of the US and announced that it would implement supplying nitrogen by pipeline for the first time in North America and also develop its liquid bulk business in the surrounding area.
Air Water America (so-called AW America headquartered in New Jersey) supervising AWI’s North American business plays the main role of the business to construct an on-site liquefaction plant with a production capacity of 240 tons per day in the Eastman Business Park situated in the industrial complex of the city.
The design and construction of the plant will be dealt with by AW America for a planned start of operation in September 2025. The construction work will be commenced from November 2024. The total investment amounted to 4 billion yen.
In North America, AW America had been providing a liquefaction plant of 305 tons/day for the distributors in the State of Minnesota which started operation in March 2023.
Not only providing plants, AW has been obtaining liquid selling right from such plants to develop the liquid bulk business in the area. However, it is the first time to do business with its own plant.
In the State of New York in May last year, AW bought Noble Gas of industrial gas distributor headquartered in Albany, New York with a sales scale of 2.2 billion yen (2022) having 43 employees, and has been preparing its liquid bulk business in the region.
In the US, AW had been proceeding with the acquisition of a regional distributor named Phoenix Welding Supply (headquartered in Phoenix, Arizona) with a sales scale of 2.5 billion yen having 60 employees whose business base is Arizona of South West. They announced to have acquired the company on August 3.
Since 2018, Air Water has been doing various businesses such as putting the US business in full swing first in the gas related equipment like large liquid gas storage tank business and then plant engineering. At the same time, it has been looking for a chance to advance into the liquid bulk business.
As seen in this case, Air Water intends to expands its gas business with an acquired distributor added to the group, building up its own ASU plant and spreading the liquid bulk business to the neighboring area.
Air Water has a target to expand the size of its North American business up to a 100 billion- yen level in 2030 which would be 5 times more than the current size of 20 billion yen.