As mining, metal fabrication, and food industries expand in Chile, the need for industrial gases is growing such that specialty gas maker Air Products (NYSE:APD) announced it will build a new facility in Antofagasta as well as expand the capacity of its Graneros plant south of Santiago at a cost of more than $15 million.
Through its South American joint venture Indura, Air Products' new plant will produce oxygen, nitrogen, and argon and along with the capacity expansion will meet the increasing demand for industrial gases in the northern and central regions of Chile.
Air Products VP and General Manager Mike Olivares said: "With this new plant in Antofagasta and expansion in Graneros, we are investing in the right places to serve the industries that continue to grow and depend on the safe and reliable supply of our products for their processes."
Last year, Air Products opened a new plant in Puerto Varas as a means of supporting local industries, including the growing aquaculture market. It also purchased a 67% stake in Indura last year and the joint venture has annual sales of $478 million. Its integrated gas and retail business includes liquid bulk, small on-sites, and packaged gases.
Fool contributor Rich Duprey and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.