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Praxair Starts Plant in Port of Antwerp, Extends Pipeline

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Industrial gas producer and supplier, Praxair Inc. (PX - Free Report) recently announced that it has started operating a new air separation plant in the Port of Antwerp, one of the largest petrochemical production hubs in the world. Also, the company communicated its intention for extending its pipeline in the region.

As revealed, the plant is Praxair’s second of its kind in the Port of Antwerp. The new plant has a daily production capacity of 1,300 tons of industrial oxygen and nitrogen. In addition, it will satisfy demand of liquid oxygen, nitrogen and argon for its customers in Belgium and the Netherlands. Prime end-markets to be served include manufacturing, metal fabrication, pharmaceutical, chemical, glass and food & beverage industries.  

In addition, Praxair has initiated its operations on the east and west banks of the Port of Antwerp for expanding its pipeline in the area. The company anticipates completing the extension by the end of 2016.

We believe such expansionary initiatives will help Praxair meet the growing preference of customers for its world-class products and services. Also, increasing application of industrial gases in manufacturing, transportation, healthcare, food & beverages, and metal fabrication industries will prove to be a boon for industrial gas producers like Praxair.

However, we believe that Praxair’s exposure to headwinds will restrict its growth momentum in the near term. Praxair currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the chemical industry include The Chemours Company (CC - Free Report) , Univar Inc. and Cabot Corporation (CBT - Free Report) . While both The Chemours Company and Univar Inc. sport a Zacks Rank #1 (Strong Buy), Cabot Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Chemours Company has a positive average earnings surprise of 144.74% for the last four quarters. Also, earnings expectations for 2016 and 2017 have improved over the past 60 days.

Innophos Holdings Inc’s financial performance has been impressive in the last quarter, with a positive earnings surprise of 61.11%.

Olin Corporation has witnessed positive revisions in earnings estimates for fiscal 2017 over the past 30 days.

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