Increased competition in industrial gas business such as air products

- Jul 17, 2019-

Campbell further pointed out that Dayang Risin and Messer need to meet some challenges before they can compete with Air Products, Air Liquide and Linde. If Messer wants to enter the US and South American markets, he will have to restructure the business; and Da Yang Rishen has almost no business in Europe, and will face the challenge of combining Japanese and American culture in Europe. He estimates that the two companies will take two to five years to compete with Air Products, Air Liquide and Linde.


Sun Nissan acquired a lot of assets in the US and Europe last year. In December last year, Dayang Rico's subsidiary, Matheson Tri Gas, acquired Linde's hydrogen and carbon monoxide business and related assets in five locations in the United States for $413 million. In July last year, Praxair agreed to sell most of its business in Europe to Da Yang Ri acid at a price of 5 billion euros (about 5.7 billion US dollars), including Praxair in Belgium, Denmark, France, Germany, Ireland. Industrial gas business in Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom. These divested assets generated sales of approximately 1.3 billion euros in 2017.


Bala Suresh, head of IHS Markit Specializations, said that Messer and Dayangjiu will gain greater growth through business acquisitions and will be a major player in the industrial gas business. In the past few years, Dayang Rishen has insisted on expanding its business outside of Japan, mainly in Southeast Asia and the United States. Suresh analysis believes that although the divestiture of Big Mac provides expansion opportunities for industrial gas second-tier companies, the lack of capital may make these companies still in a disadvantage in the capital-intensive industrial gas