April 30, 2004 Lehigh Valley, Pa.
After five years of providing turnkey support and services to the U.S.-based semiconductor industry, Air Products (NYSE: APD) and Kinetic Systems, Inc. have decided to let their operating contract for the TRiMEGA joint venture (JV) expire. The agreement reflects changes in an evolving semiconductor industry that is shifting more of its production and manufacturing functions to Asia.
Both companies anticipated this regional shift and have allocated resources and capital to support the growing Asian market. As a result, each company has competitively positioned itself in Asia and can provide a variety of turnkey services and infrastructure support the TRiMEGA JV jointly offered in the US and Europe.
"The TRiMEGA joint venture had a successful five-year run and continued to exceed expectations despite an unfavorable economic environment," said Joseph Stockunas, Air Products general manager of electronics equipment. "In its five years, we believe it helped to redefine the way in which customers in the semiconductor industry are served."
"Kinetics and Air Products have successfully worked together on projects for almost 20 years," added Kurt Gilson, president of Kinetic Systems, Inc. "The TRiMEGA joint venture was an example of that strong relationship, and largely through the support of our customers and employees, we were able to provide a truly unique offering that will continue to redefine the project delivery approach for process materials in a semiconductor fab."
The 50/50 joint venture, which primarily serviced customers in the United States and Europe, is at the end of a five-year contract and will expire May 31, 2004. During that time, it served as a one-stop solution for fab process systems, offering customers a comprehensive service package ranging from the initial fab design to a variety of specialty chemicals and gases product offerings.
The agreement ends a joint venture between the two companies that generated over $300 million in revenue, while successfully implementing more than 30 projects during that time.
About Air Products
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $6.3 billion and operations in over 30 countries, the company's 18,500 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com
About Kinetic Systems, Inc.
Kinetic Systems is a division of the Kinetics Group specializing in process system solutions for the electronics and biopharm industries. Kinetics combines support equipment manufacturing, design and an unmatched global installation capability, for a complete process systems offering at client locations around the world. For over three decades, the employees of Kinetics have been committed to the principles of safety, customer service, quality workmanship and continuous improvement to meet the needs of a changing world. NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations. Kinetic Systems, Inc. Contact:
Tel: (408) 588-4431