Increased production from the steel and chemical sectors in Latin America is believed to be driving the demand for industrial gases in the region, with the gases majors all ready to heavily invest in this surge.
Brazil and Mexico account for 75% of the industrial gases market in Latin America, with at least one-third of volumes being produced by on-site plants. The industrial gases business is thought to have been growing by around 10% per year in Brazil and annual sales are around $1.3bn, according to market sources. White Martins, a division of US gases giant Praxair, dominates this market with about a 65% market share.
White Martins operates 49 industrial gas and chemical plants in Brazil and has an approx. 65% market share in the country, with CEO Domingos Bulus commenting, “As the biggest economy of South America, Brazil is a key market for Praxair, representing more than 80% of the sales in the region.”
The company aims to invest at least $180m in Brazil alone, but is also present in eight other countries in South America including Argentina, Bolivia, and Chile and has invested nearly $1bn in the region between 2003 and 2008. White Martins’ main goals are to focus on four major platforms in South America, these being on-site customer supply systems, energy, applications technology, and productivity.
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