Industrial gas maker Praxair (NYSE: PX ) announced today it is expanding its presence in southern Russia with the acquisition of Volgograd Oxygen Factory, an industrial gas producer with some 2,000 customers across the steel, aerospace, health care, and food and beverage industries, which it says will offer "immediate synergies" with Praxair's newly built air separation plant in Volgograd.
Financial terms of the transaction were not disclosed.
In addition to its own plant, Praxair acquired Volzhsky Azot in 2012, which included two air separation units and a bulk and packaged gas business located in the Volgograd region. It has also invested in four other major projects in Russia, with combined production capacity greater than 3,500 tons per day of gaseous and liquid oxygen, nitrogen, hydrogen, and argon.
Noting the benefits derived from the density of operations it is achieving in the region, Praxair Europe President Todd Skare said: "We expect to derive immediate synergies with Praxair's newly built air separation plant in Volgograd, as well as the integration of VOF into our existing regional infrastructure. Further, we expect to drive new profitable growth from VOF's large packaged gas presence in the region."
Praxair is the largest specialty gas producer in North and South America, and is one of the largest worldwide, generating revenues of $11 billion in 2012.