Air Products Membrane Solutions Breaks Ground on $70 Million Expansion of its Missouri Manufacturing and Logistics Center
Air Products (APD) announced a $70 million expansion of its Missouri Manufacturing and Logistics Center, marking its largest investment to date. This expansion, driven by increasing demand for biogas and hydrogen recovery, and nitrogen use in aerospace and marine industries, aims to be operational by the end of 2025. The facility will add 30 new full-time positions to the current 170 employees. This follows a $10 million investment in 2023. Air Products Membrane Solutions specializes in gas separation and purification, offering products like PRISM® Membrane Separators and Marine Systems across various industries. The expansion aligns with the company's goal to lead in energy transition technologies.
- $70 million investment marks the largest ever for Air Products Membrane Solutions, indicating strong business growth.
- Expansion driven by rising demand in biogas, hydrogen recovery, aerospace, and marine industries.
- Addition of 30 new full-time positions, increasing workforce from 170 to 200 employees.
- Facility expected to be operational by the end of 2025, suggesting forward-looking business growth.
- $70 million investment may involve significant capital expenditures impacting short-term financial stability.
Insights
Air Products' considerable investment of
In the short term, the market will likely respond positively to this news, which aligns with current trends towards sustainability. Investors should note the 30 new full-time positions being created, indicating a moderate scale-up that should incrementally improve productivity and revenue streams by the end of 2025.
In the long term, the addition of new capabilities and increased production strength can boost Air Products' market share in the biogas and hydrogen sectors. However, investors should remain vigilant about potential execution risks related to large-scale projects and the volatility of emerging energy markets.
This expansion reflects a strategic bet on the future of energy transition technologies. The biogas, aerospace and marine industries are key growth markets that are seeing increasing regulatory and economic support. With the global shift towards cleaner energy, Air Products’ investment is well-timed to meet these evolving demands.
For retail investors, it’s important to understand how the company's offerings – such as the PRISM® Membrane Separators and Marine Systems – fit into broader market trends. The PRISM® Membrane Separators address multiple industries like aerospace and offshore drilling, indicating a diverse revenue base which can mitigate risks associated with any single market.
Additionally, the marine systems’ dominance (serving over 2,000 ships) highlights a strong foothold in an industry that is under pressure to reduce emissions. The investor takeaway is that Air Products is not only expanding but also reinforcing its market leadership in critical sectors.
Expansion Driven by Growing Interest in Energy Transition Technologies in the Biogas, Aerospace and Marine Industries
The investment, which is Air Products Membrane Solutions' largest ever, is driven by growing product demand in biogas and hydrogen recovery applications, as well as customer needs for the use of nitrogen for the aerospace industry and cleaner fuels for the marine industry.
"We are excited to officially break ground on this important project. This expansion builds on our commitment to be a leader in the energy transition," said Dr. Erin Sorensen, general manager, Air Products Membrane Solutions. "I share in our local team's excitement for today's event and in the promise of what this new facility will mean for our business and our customers as we continue to work together to generate a cleaner future."
A crowd of more than 100 guests including state and local leaders joined Air Products Membrane Solutions employees for the groundbreaking event. Those in attendance included program speakers Taylor Mazdra, Regional Manager, Missouri Department of Economic Development and Mike Moeller, Mayor,
The new manufacturing facility is expected to be in production by the end of 2025 and include the addition of 30 new full-time positions. Currently, about 170 employees work at the
Air Products Membrane Solutions specializes in the development of hollow fiber membrane separators and systems for onsite gas generation. Air Products designs, engineers, manufactures, and markets a full portfolio of PRISM® Membrane Separators, Marine Systems, and Engineered-to-Order Systems to protect lives and goods at sea, on land, and in the air. Air Products' systems are also designed to create more sustainable energy sources and raise productivity across a variety of industries and applications.
Air Products Membrane Solutions' key offerings include:
- PRISM® Membrane Separators – Consist of thousands of polymeric hollow fibers that act as a molecular filter to separate gases into individual elements, including methane, nitrogen or hydrogen. The membrane separators are offered to value-added packagers as an original equipment manufacturer component inside specialized systems. Industries served include aerospace, offshore drilling, food and beverage, transportation, and defense.
- Marine Systems - Air Products is the world's most experienced and largest supplier of marine-based membrane systems serving several market segments including dual-fuel systems, chemical tankers, oil platforms and liquefied natural gas carriers. More than 2,000 ships worldwide currently use separation systems based on Air Products' membrane technology.
- Engineered-to-Order-Systems - Large industrial membrane systems for nitrogen generation and process gas applications, which are fully tailored to customer specifications serving the oil and gas industry, ammonia plants, chemical manufacturing facilities, and renewable diesel production.
- Global Service and Support - Provides maintenance and optimization of membrane systems, offering health checks, replacement parts, remote monitoring, and other services to keep membranes operating at peak performance.
For more information on Air Products Membrane Solutions, visit membranesolutions.com.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally.
The Company had fiscal 2023 sales of
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
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SOURCE Air Products
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