Linde (LIN) Notifies Capacity Expansion of South Korea Facility
Linde plc (LIN) recently announced that it would increase the capacity of its on-site plant in Tangjeong, South Korea. It would do so with a view to supply Samsung Display with high-purity industrial gases. The expansion project will support Samsung Display’s multi-billion-dollar investment plan to transform its current LCD production line to OLED. Smartphones, virtual reality headsets and laptops are just a few products that make use of OLEDs.
Linde's cutting-edge SPECTRA facility is expected to produce more than 2,000 tons of high purity nitrogen every day. This nitrogen will be used in cooling and purging procedures at Samsung Display's manufacturing units.
The new facility will increase the size of Linde's present Tangjeong complex, which currently provides Samsung Display with industrial gases. The complex presently consists of four air separation units, along with associated pipeline network and infrastructure. The new plant will supply crude rare gases to Linde's new purification facility in neighboring Hyungok, in addition to supplying Samsung Display and the local merchant market. Linde is expected to invest approximately $100 million in this project, which is scheduled to begin operations toward the end of 2024.
According to B.S. Sung, general manager South Korea, Linde, the company has been supplying various gases to Samsung Display for 20 years. He added that with this additional capacity in Tangjeong, Linde will be able to increase its network density in the region. This, in turn, will help the company in meeting the demand for industrial gases from South Korea's growing electronics markets.
Zacks Rank & Other Key Picks
Currently, Linde carries a Zack Rank #2 (Buy).
Some other top-ranked stocks in the basic material sector are Royal Gold Inc. RGLD, Methanex Corporation MEOH and Nucor Corporation NUE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Gold has been benefiting from its acquisitions and strong business model. RGLD’s financial results are primarily tied to the price of gold, silver, copper and other metals. The recent pickup in metal prices bode well for RGLD. Over the past seven days, the company has seen an upward revision in earnings estimates for 2023 and 2024.
Methanex, headquartered in Vancouver, Canada, is the world’s largest supplier of methanol to North America, Asia-Pacific, Europe and Latin America. MEOH is benefiting from healthy prices. This was brought about by the industry’s supply challenges that led to an upsurge in methanol prices. Over the past seven days, MEOH has witnessed an upward revision in earnings estimates for 2023 and 2024.
Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron that is used in its steel mills. Nucor has been focusing on growth through strategic acquisitions over the past several years. In the past 30 days, NUE has seen an upward revision in earnings estimates for 2023 and 2024.
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