Company Meets Rapidly Increasing Gas Demands Driven by Burgeoning Secondary Battery Market
LEHIGH VALLEY, Pa., April 25, 2019 /PRNewswire/ -- Air Products (APD) today announced it has been awarded the on-site oxygen and nitrogen supply for POSCO Chemical's new cathode material manufacturing complex being built in Gwangyang, South Korea. POSCO Chemical is an affiliate of POSCO Group, the largest integrated steelmaker in Korea and one of the largest in the world.
Air Products has been supplying pipeline oxygen to POSCO Chemical's existing site in Gumi for producing cathode materials used in secondary batteries. To support POSCO Chemical's new production line, Air Products will build, own and operate two air separation units, which are scheduled to come on-stream in 2020.
"POSCO Chemical has been a strategic customer of Air Products, and we are honored to have their continued confidence in our capabilities to support their expansion into Gwangyang," said Kyo-Yung Kim, president of Air Products Korea. "Demand for secondary batteries in Korea continues to increase sharply, which is in part fueled by the rapid growth of electric vehicles and energy storage systems due to environmental trends. Air Products will continue to look for opportunities to bring reliable and efficient gas solutions to this burgeoning industry."
Cathode materials are a major component of secondary batteries and are critical for battery performance. These materials are commonly used in devices, such as mobile phones, consumer devices, energy storage systems, golf carts, electric bicycles and electric vehicles.
The global leading steelmaker POSCO Group has been expanding its business into the secondary battery industry. POSCO Chemical was formed in April 2019 following the merger between POSCO Chemtech and POSCO ESM—two affiliates of the Group engaged in the production of key battery materials—which were founded in 1963 and 2012, respectively.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 75 years. The company provides industrial gases and related equipment to dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment.
The Company had fiscal 2018 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of about $40 billion. Approximately 16,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com.
NOTE: This release may contain 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 reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2018.