LEHIGH VALLEY, Pa. - Air Products (NYSE:APD) has announced plans to invest over $70 million to expand its manufacturing and logistics center in Maryland Heights, near St. Louis, Missouri. The expansion, which is the largest in the history of Air Products Membrane Solutions, aims to meet increasing demand across various industries, including biogas, hydrogen recovery, aerospace, and marine.
The investment is expected to enhance the company's production capacity for gas separation and purification membranes, which are essential in the production of cleaner fuels and other energy transition technologies. Dr. Erin Sorensen, general manager at Air Products Membrane Solutions, emphasized the company's commitment to innovation and community growth, stating the expansion will bolster their global manufacturing capabilities in the United States.
The new facility is anticipated to be operational by the end of 2025 and will create 30 new jobs, adding to the current workforce of about 170 employees. This expansion follows a $10 million investment made in 2023 to ramp up the existing facility's production capacity.
Missouri Governor Mike Parson and Missouri Department of Economic Development Director Michelle Hataway have welcomed the expansion, highlighting Air Products' role in contributing to the state's business growth and economic prosperity. The company's decision to invest further in Maryland Heights is seen as a testament to Missouri's favorable business environment and skilled labor force.
Air Products Membrane Solutions specializes in hollow fiber membrane separators and systems for on-site gas generation. Their products, including PRISM® Membrane Separators and Marine Systems, serve a wide range of industries and applications. The company's global service and support network also provides maintenance and optimization for these systems.
As a world-leading industrial gases company with operations spanning over 80 years, Air Products reported fiscal 2023 sales of $12.6 billion and currently boasts a market capitalization of over $50 billion. With approximately 23,000 employees worldwide, the company continues to focus on sustainable solutions that address environmental challenges and support the global energy transition.
The information in this article is based on a press release statement from Air Products.
InvestingPro Insights
Air Products (NYSE:APD), a key player in the industrial gases sector, is not just making headlines with its recent expansion plans, but also catching the eye of investors with notable financial metrics and trends. As of the last twelve months leading up to Q2 2024, Air Products has maintained a robust market capitalization of $58.62 billion, reflecting its significant presence in the industry.
Investors examining the company's valuation metrics will find a Price-to-Earnings (P/E) ratio of 23.71, suggesting a premium market valuation relative to current earnings. However, this figure is adjusted to a slightly lower P/E ratio of 22.99 when considering the performance over the last twelve months as of Q2 2024. This could indicate a slight improvement in earnings or a decrease in share price, providing a potentially more favorable entry point for value-oriented investors.
One of the InvestingPro Tips that stands out for Air Products is its impressive track record of dividend reliability, with the company raising its dividend for 54 consecutive years. This consistency demonstrates a strong commitment to returning value to shareholders and could be particularly attractive to those seeking steady income streams.
Another tip from InvestingPro highlights that the stock has experienced a strong return over the last month, with a 13.24% price total return. This performance, coupled with the company's strategic investments, could signal confidence in Air Products' future growth prospects and operational expansion.
For investors eager to delve deeper into Air Products' financials and gain access to more InvestingPro Tips, which can provide additional insights into the company's performance and potential investment opportunities, a visit to InvestingPro is recommended. There, users can explore a total of 9 insightful tips for Air Products. And remember, by using the coupon code PRONEWS24, you can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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