The Japanese industrial gas industry is moving steadily along. Nevertheless, the financial uncertainty sparked by the subprime problem which occurred in the US last autumn has certainly had an effect on the Japanese economy. The Japanese stock exchange fell by an average of 30% and the bottom is not yet in sight. Production in the electronics, oil, optical fibre, steel, shipbuilding, and chemical industries, which are the major users of industrial gases, had not fallen off as of March of this year. The uncertainty in financial circles, the soaring prices of crude oil and materials, along with the plunge in the stock market however, has not been without an adverse effect on corporate business results.
Forecasts call for negative figures regarding profit in the March 2009 term for the steel, chemical, and automotive sectors. Nevertheless, the level of production has not decreased to the extent that the industrial gas consumption has been affected. This is a trend which could clearly be seen as of the period ending March this year.
As a vivid expression of this, the business results of the two major Japanese industrial gas firms, Taiyo Nippon Sanso and Air Water, are both expected to show increased earnings and profit. Although there has not yet been a formal announcement, sales of Taiyo Nippon Sanso are expected to amount to ¥497bn, with ordinary profit of ¥39.2bn, while Air Water is expected to show sales of ¥425bn, with ordinary profit of ¥27.5bn, progressing according to plan. All of the major companies can be said to have had an extremely solid year and while the industrial gas industry is of course affected by capital investment and the level of production of the users, at present capital investment in the electronics and machinery sectors has not slackened.
At the Sharp plant in Sakai, Osaka Prefecture, which will be one of the world’s largest production bases for LCD’s and photovoltaic (PV) modules, the initial investment for the gas facilities amounts to ¥30bn and this should finally reach over ¥60bn. It is said that the consumption of gas may eventually reach 200,000 m3/h for nitrogen, 10,000 m3/h for oxygen, and 1.2 million m3/h for dry air. Taiyo Nippon Sanso and Air Water have established a joint venture called Sakai Gas Centre to supply oxygen, nitrogen, helium, argon, and dry air. In terms of specialty gas, by 2012 Taiyo Nippon Sanso will supply an annual quantity of 200-300 tonnes of silane, and 400-500 tonnes of NF3.
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