Air Products & Chemicals Inc. (APD) has inked an agreement to give rights of its patented cryogenic machining technology to Advanced Research Systems, Inc. (“ARS”). ARS is a leading cryogenic equipment manufacturer known for its low-temperature cryostats.
The contract gives ARS license to Air Products’ proprietary ICEFLY cryogenic machining technology, which is widely used for machining of metals and polymer materials.
The contract also includes transfer of Air Products’ ICEFLY cryogen delivery equipment design information and cryogenic machining knowhow to ARS. This ICEFLY cryogen delivery equipment is designed to provide either a uniform saturated flow of liquid nitrogen for metals machining or a predetermined low-temperature stream of gaseous nitrogen for polymer machining.
During metal machining, liquid nitrogen provides faster cutting while efficient cooling increases tool life. In polymer machining, the preset low-temperature gaseous nitrogen reduces chances of rough edges on the work pieces.
Being a global gas supplier and manufacturer of cryogenic technology, Air Product management is pleased to provide ARS customers with efficient and economic nitrogen supply to meet their specific needs. Air Products also believes that ARS has sufficient engineering and manufacturing capacities to support ICEFLY cryogenic machining technology.
This agreement marks an alliance between a technology and operation-focused entity and a mid-size specialty cryogenics company, which could facilitate the commercialization of the cryomachining solution globally.
Air Products should benefit from a diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support results in fiscal 2014.
Air Products currently holds a Zacks Rank #3 (Hold).
Some better-ranked companies worth considering in the diversified chemical space include Johnson Matthey plc (JMPLY), Valhi, Inc. (VHI) and LyondellBasell Industries NV (LYB). All of them hold a Zacks Rank #2 (Buy).
Read the Full Research Report on LYB
Read the Full Research Report on VHI
Read the Full Research Report on JMPLY
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