How the Company is Capitalizing on Growth Opportunities Tied to Global Trends
LEHIGH VALLEY, Pa. (May 8, 2003) — Speaking today in Boston at an R&D Forum sponsored by Salomon Smith Barney, Miles Drake, Air Products' (NYSE:APD) vice president and chief technology officer, spoke about how Air Products is using its innovation engine to capitalize on growth opportunities tied to global trends.
"Air Products' Refinery Hydrogen business has grown to meet refiners' needs for the production of clean fuels; our Electronics business on the growth in computing and communications; our Performance Materials business on the shift from solvent to more environmentally-friendly water-based paints, inks, adhesives and coatings; and our Healthcare business on increased demand for treatments that can be administered in the home," Drake said. "We see further opportunity for growth over the next decade and beyond based on opportunities created by areas such as sustainable development, information technology, an aging demographic and advances in healthcare services, and other energy, materials and manufacturing developments."
Drake noted that Air Products has a long history of innovation based on developing process, material and service solutions to crack customers' problems. In recent years, the focus has shifted to further integrating the company's gases and chemicals capabilities to spur growth in Air Products' four growth platforms. Today, more than 65 percent of Air Products' research and development spending is applied to the Refinery Hydrogen and Energy Solutions, Electronics, Performance Materials and Healthcare areas. As a result, Drake says the payoffs for customers have been significant.
"Our Airflex® EF811 vinyl acetate emulsion for the architectural coatings market, which falls under our Performance Materials platform, is a great example," he said. "With tighter volatile organic compound (VOC) restrictions, paints will need to be formulated at lower solvent levels where the performance of conventional vinyl acrylics is compromised. With our knowledge of emulsion technology, we have been able to dramatically expand the amenability of vinyl acetate emulsion (VAE) products into the paints market. EF811 brings the many advantages of the VAE system to paint formulations, including low solvent, low odor, great touch-up and scrub resistance. This innovation requires both process technology for novel manufacturing and formulation expertise, and applications development to tailor the product for different markets in North America, Europe and Asia."
Drake noted that the knowledge of products used in Performance Materials markets is increasingly being transferred to the company's global Electronics business. "We see tremendous opportunity in cross-fertilizing these growth businesses, where, in Electronics, we are already the leading supplier of all the consumable products that surround the process tool."
Because innovation goes beyond the company's in-house capabilities, Drake explained that Air Products frequently makes use of collaborations, partners, suppliers and academia to bring the skills and ideas needed to grow. Air Products also uses venture investments to build both business and technical positions and works with a variety of government organizations and other industry groups in a number of demonstration projects and technical research work. "Our partnership project with the U.S. Department of Energy, Plug Power, Inc. and the City of Las Vegas to start-up the world's first hydrogen energy station featuring the co-production of hydrogen fuel and electric power is a great example," Drake said. "As the leader in hydrogen today, we are providing a critical role in hydrogen fuel safety codes and standards, using our considerable knowledge to safely generate, distribute and store hydrogen."
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. The company is the largest global supplier of electronic materials, hydrogen, helium and select performance chemicals. Founded in 1940, Air Products is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $5.4 billion and operations in over 30 countries, the company's 17,200 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com. |
|
