Member Article

Material technology firm confirms US joint venture

Salford-based Luxfer Holdings PLC, a materials technology company, has announced a joint venture with the owners of GTM Technologies, a US division of IGX Group, Inc., which supplies industrial gases and gas-related equipment.

The joint venture specialises in manufacturing modules for transportation and bulk storage of compressed gases, including natural gas, hydrogen, helium, breathing air and other gases. Major components of these modules, or transports, are large aluminum-lined carbon composite cylinders manufactured by Luxfer Gas Cylinders, a division of Luxfer Group. The joint venture manufactures its products at GTM’s facility in Tulsa, Oklahoma.

Michael Koonce, owner of IGX, is also president of the joint venture, which is focused on the rapidly growing North American market for storage and transportation of compressed natural gas (CNG). The extraction of natural gas from more than 20 major shale oil basins in the USA, as well as several locations in Canada, is driving demand.

Mr Koonce said: “Using our composite cylinder gas transports is an efficient and economical way to transport natural gas from remote production sites. We essentially provide portable pipelines.

“Compressing natural gas, rather than liquefying it, requires less capital equipment and is much less energy-intensive. Unlike LNG, CNG is stable, requiring no insulation or refrigeration, and it costs about half as much to produce. Our customers are now able to switch to natural gas as a fuel source and thereby cut their energy costs by more than half, which can mean millions in some cases.”

The company’s modules can fit all standard ISO containers routinely transported by trucks, trains, barges and ships around the world.

Luxfer also announced that half-year revenue and operating profit had fallen.

Turnover for the six months to 30 June 2013 fell from £172.5m to £158.5m while operating profit dropped from £23.3m to £19.1m.

The company’s statement commented: “Two key markets, European automotive and US defence, are currently weak as a result of both destocking and reduced end-market demand. It is clear from the trading conditions seen in Q2 2013 that generally European industrial markets are fragile, with reduced end-demand and knock-on margin pressures.”

This was posted in Bdaily's Members' News section by Simon Malia .