Data Monitor

INDUSTRY PROFILE
Industrial Gases in
Canada
Reference Code: 0070-2083
Publication Date: June 2011
www.datamonitor.com
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Canada - Industrial Gases

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0070 - 2083 - 2010

Page 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The Canadian industrial gases market grew by 24.3% in 2010 to reach a value of $957.6 million.
Market value forecast

In 2015, the Canadian industrial gases market is forecast to have a value of $902.9 million, a decrease of
5.7% since 2010.
Market segmentation I
Merchant gases (liquefied, tank delivery) is the largest segment of the industrial gases market in Canada,
accounting for 36.1% of the market's total value.
Market segmentation II
Canada accounts for 6.9% of the Americas industrial gases market value.
Market rivalry
Industrial gas companies are typically large, international players that benefit from their scales of
operations. The presence of such incumbents intensifies rivalry in the market.

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CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY
MARKET OVERVIEW
Market definition
Research highlights
Market analysis
MARKET VALUE
10
MARKET SEGMENTATION I
11
MARKET SEGMENTATION II
12
FIVE FORCES ANALYSIS
13
Summary
13
Buyer power
14
Supplier power
15
New entrants
16
Substitutes
17
Rivalry
18
LEADING COMPANIES
19
Airgas, Inc.
19
Praxair, Inc.
23
Air Liquide SA
27
Air Products and Chemicals, Inc.
31
MARKET FORECASTS
36
36
MACROECONOMIC INDICATORS
37
APPENDIX
39
Methodology
39
Industry associations
40
Further reading
40
ABOUT DATAMONITOR

42
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CONTENTS
Premium Reports
42
Summary Reports
42
Datamonitor consulting
42

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CONTENTS
LIST OF TABLES
Table 1:
Canada industrial gases market value: $ million, 200610
10
Table 2:
Canada industrial gases market segmentation I:% share, by value, 2010
11
Table 3:
Canada industrial gases market segmentation II: % share, by value, 2010
12
Table 4:
Airgas, Inc.: key facts
19
Table 5:
Airgas, Inc.: key financials ($)
20
Table 6:
Airgas, Inc.: key financial ratios
21
Table 7:
Praxair, Inc.: key facts
23
Table 8:
Praxair, Inc.: key financials ($)
25
Table 9:
Praxair, Inc.: key financial ratios
25
Table 10:
Air Liquide SA: key facts
27
Table 11:
Air Liquide SA: key financials ($)
28
Table 12:
Air Liquide SA: key financials ()
28
Table 13:
Air Liquide SA: key financial ratios
29
Table 14:
Air Products and Chemicals, Inc.: key facts
31
Table 15:
Air Products and Chemicals, Inc.: key financials ($)
34
Table 16:
Air Products and Chemicals, Inc.: key financial ratios
34
Table 17:
Canada industrial gases market value forecast: $ million, 201015
36
Table 18:
Canada size of population (million), 200610
37
Table 19:
Canada gdp (constant 2000 prices, $ billion), 200610
37
Table 20:
Canada gdp (current prices, $ billion), 200610
37
Table 21:
Canada inflation, 200610
38
Table 22:
Canada consumer price index (absolute), 200610
38
Table 23:
Canada exchange rate, 200610
38

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CONTENTS
LIST OF FIGURES
Figure 1:
10
Figure 2:
11
Figure 3:
12
Figure 4:
Forces driving competition in the industrial gases market in Canada, 2010
13
Figure 5:
Drivers of buyer power in the industrial gases market in Canada, 2010
14
Figure 6:
Drivers of supplier power in the industrial gases market in Canada, 2010
15
Figure 7:
Factors influencing the likelihood of new entrants in the industrial gases market in
Canada, 2010
16
Factors influencing the threat of substitutes in the industrial gases market in Canada,
2010
17
Figure 9:
Drivers of degree of rivalry in the industrial gases market in Canada, 2010
18
Figure 10:
Airgas, Inc.: revenues & profitability
21
Figure 11:
Airgas, Inc.: assets & liabilities
22
Figure 12:
Praxair, Inc.: revenues & profitability
26
Figure 13:
Praxair, Inc.: assets & liabilities
26
Figure 14:
Air Liquide SA: revenues & profitability
29
Figure 15:
Air Liquide SA: assets & liabilities
30
Figure 16:
Air Products and Chemicals, Inc.: revenues & profitability
35
Figure 17:
Air Products and Chemicals, Inc.: assets & liabilities
35
Figure 18:
36
Figure 8:

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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The industrial gases market is deemed to be the revenues accrued by manufacturers from the production
of industrial gases. These include merchant gases, packaged gases, on-site supply for large industries,
healthcare gases and gases used in electronic production and others. All currency conversions are
calculated at 2010 annual average exchange rates.
For the purposes of this report, the Americas consists of North America and South America.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

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MARKET OVERVIEW
Research highlights
The Canadian industrial gases market generated total revenue of $957.6 million in 2010, representing a
compound annual growth rate (CAGR) of 2.2% between 2006 and 2010.
The merchant gases (liquefied, tank delivery) segment is the market's most lucrative in 2010, with total
revenue of $345.5 million, equivalent to 36.1% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CARC of -1.2% for the fiveyear period 2010 - 2015, which is expected to drive the market to a value of $902.9 million by the end of
2015.

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MARKET OVERVIEW
Market analysis
The Canadian industrial gases market has displayed volatile growth in recent years, and declined
noticeably in 2009. It did however, recover strongly in 2010. This is not expected to continue and the
market is forecast to experience marginal overall decline between 2010 and 2015.
The Canadian industrial gases market generated total revenue of $957.6 million in 2010, representing a
compound annual growth rate (CAGR) of 2.2% between 2006 and 2010. In comparison, the US market
declined with a compound annual rate of change (CARC) of -2.6%, and the Mexican market increased
with a CAGR of 9.3%, over the same period, to reach respective values of $7,296.8 million and $1,020.3
million in 2010.
The merchant gases (liquefied, tank delivery) segment is the market's most lucrative in 2010, with total
revenue of $345.5 million, equivalent to 36.1% of the market's overall value. The merchant gases
(cylinder delivery) segment contributes revenue of $239.4 million in 2010, equating to 25% of the market's
aggregate value.
The performance of the market is forecast to decelerate, with an anticipated CARC of -1.2% for the fiveyear period 2010 - 2015, which is expected to drive the market to a value of $902.9 million by the end of
2015. Comparatively, the US and Mexican markets will grow with CAGRs of 8% and 10.5% respectively,
over the same period, to reach respective values of $10,738 million and $1,679.1 million in 2015.

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MARKET VALUE
MARKET VALUE
The Canadian industrial gases market grew by 24.3% in 2010 to reach a value of $957.6 million.
The compound annual growth rate of the market in the period 200610 was 2.2%.
Table 1:
Year
$ million
C$ million
million
% Growth
2006
2007
2008
2009
2010
877.0
824.6
840.2
770.3
957.6
904.0
850.0
866.0
794.0
987.0
660.6
621.1
632.8
580.2
721.3
(6.0%)
1.9%
(8.3%)
24.3%
CAGR: 200610
Source: Datamonitor
Figure 1:
2.2%
DATAMONITOR
Source: Datamonitor

DATAMONITOR
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Page 10
Merchant gases (liquefied, tank delivery) is the largest segment of the industrial gases market in Canada,
accounting for 36.1% of the market's total value.
The merchant gases (cylinder delivery) segment accounts for a further 25% of the market.
Table 2:
Category
% Share
36.1%
25.0%
21.4%
8.3%
4.8%
4.4%
Merchant gases (liquefied, tank delivery)

Merchant gases (cylinder delivery)
High volume gases, on-site gen.
Electronics
Healthcare
Other
Total
100%
Source: Datamonitor
Figure 2:
DATAMONITOR
Source: Datamonitor

DATAMONITOR
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Page 11
Canada accounts for 6.9% of the Americas industrial gases market value.
The United States accounts for a further 52.2% of the Americas market.
Table 3:
Category
% Share
52.2%
7.3%
6.9%
33.6%
United States
Mexico
Canada
Rest of the Americas
Total
100%
Source: Datamonitor
Figure 3:
DATAMONITOR
Source: Datamonitor

DATAMONITOR
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Page 12

The industrial gases market will be analyzed taking manufacturers of industrial gases as players. The key
buyers will be taken as manufacturers in industries such as metalwork, chemicals and refining, energy
and electronics, and various raw material producers as the key suppliers.
Summary
Figure 4:
Forces driving competition in the industrial gases market in Canada, 2010
Source: Datamonitor
DATAMONITOR
Industrial gas companies are typically large, international players that benefit from their scales of
operations. The presence of such incumbents intensifies rivalry in the market.
The Canadian industrial gas market is characterized by the presence of large, diversified international
companies. The presence of such powerful incumbents acts as a significant barrier to entry and the need
for substantial initial investment to set up high volume production plants also reduces the threat of new
companies establishing themselves in this market. The global industrial gases market witnessed a decline
in value in 2009, owing to the worldwide economic slowdown. 2010 however, saw the market rebound
with the help of economic stimulus plans which spurred many industrial and construction projects, further
increasing the demand for incumbents products. Substitutes in industrial gas market are few as in many
cases buyers purchase gases based on their specific physical and chemical properties, reducing the risk
of alternatives. High fixed costs and exit barriers intensify competition level within the market.

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Buyer power
Figure 5:
Drivers of buyer power in the industrial gases market in Canada, 2010
Source: Datamonitor
DATAMONITOR
The Canadian industrial gas market is characterized by the presence of large, diversified international
companies, with their products serving a multitude of markets. Players tend to supply a large number of
buyers with high volumes of gas, weakening buyer power. However, as this is usually supplied through
lengthy contracts buyers are able to negotiate on price, thereby strengthening buyer power. As these
gases are essential for many manufacturing processes for example the metal industry uses oxygen,
nitrogen and argon, the automotive industry uses acetylene, propane, mixtures of fuel gases, and oxygen,
whilst liquid nitrogen is vital for recycling plastics, packaging and scrap tires- this places industry players
in a very strong position. As such losing such customers would have a minimal impact on players
revenues, limiting buyer power somewhat. On the other hand, buyer power is increased by the fact that
industrial gases are commodities differentiated only by factors such as purity, and branding which is
insignificant to buyers. Overall buyer power is assessed as moderate.

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Supplier power
Figure 6:
Drivers of supplier power in the industrial gases market in Canada, 2010
Source: Datamonitor
DATAMONITOR
The industrial gas sector is very different from other types of manufacturing processes because many of
its raw materials are basically extracted from the atmosphere. Industrial gases can be produced in several
ways, for example by chemical synthesis - sulfur dioxide is produced by the burning of sulfur, propane is
derived from petroleum products during oil or natural gas processing, and methane in the principal
component of natural gas. Fractional distillation of air is a key source of other gases. Companies engaged
in the supply of such raw materials to the industrial gas market are few in number, thereby allowing them
to exert significant supplier power when negotiating on price.
Market players must also invest in pipelines and containers for the transportation of industrial gases.
Suppliers of pipelines and containers are more widespread than those of raw materials, diminishing their
power somewhat. On the other hand, as market players enter into lengthy contracts, switching costs can
be incurred should they opt to leave early, thereby boosting supplier power. Overall, supplier power is
assessed to be moderate in this market.

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New entrants
Figure 7:
Factors influencing the likelihood of new entrants in the industrial gases market in
Canada, 2010
Source: Datamonitor
DATAMONITOR
Entrance to the industrial gases market requires significant capital outlay in order to set up high volume
production plants. As industrial gases are typically sold in bulk, leading industrial gas companies namely,
Air Liquide or Praxair are typically large, diversified, multinational companies, which use the large scale of
their production to reduce costs and enhance profitability. To keep up with the leading players, utilizing
their scale economies, strong research and development (R&D) capability is required. The presence of
such powerful incumbents acts as a significant barrier to entry. There is also a significant regulatory
environment within industrial gas market, which is restrictive to the entry of players. New entrants must
pay particular attention to environmental regulations which are applied to the production, storage and
transportation of industrial gases. The industrial gas market is stringently regulated. The lack of
differentiation in the product coupled with buyers being prone to switching due to little brand loyalty serves
to increase rivalry amongst market players, but in itself should favor new entrants. Access to suppliers of
raw materials can be difficult as they are few in number and small-scale entry is unlikely to be successful.
Double digit growth in 2010, is set to be offset by negative growth in 2011 and followed by slow
annualized growth through to 2015 which will prove very unattractive to new entrants. Overall, there is a
moderate threat of new entrants to this market.

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Substitutes
Figure 8:
Factors influencing the threat of substitutes in the industrial gases market in Canada,
2010
Source: Datamonitor
DATAMONITOR
Industrial gases are quite specific in their composition, meaning that there can be very few substitutes.
Buyers will purchase gases based on their particular physical and chemical properties, and even when a
substitute gas (i.e. one which is slightly different in composition, but offers similar properties to the enduser) can be used it is normally manufactured by the same companies as suppliers to this market are
limited. Overall there is a weak threat of substitutes to the industrial gases market.

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Rivalry
Figure 9:
Drivers of degree of rivalry in the industrial gases market in Canada, 2010
Source: Datamonitor
DATAMONITOR
Industrial gas companies are typically large, integrated players that benefit from their scales of operations.
The presence of such incumbents intensifies rivalry in the market. Due to the fact industrial gas
operations are highly energy and labor intensive, fixed costs are also high and market is hard to exit as
leaving would require significant divestments of assets specific to the business. Main players activities
have diversified operations, meaning they are not solely reliant on sales of industrial gases. For example
Praxair operates in over 30 countries and serves a vast number of industries such as metals, health care,
aerospace and energy. Similarly, Air Liquide operates through three business segments: gas and
services, engineering and construction, and other activities. As does Air Products and Chemicals whom
operate in many locations worldwide and produces both gases such as argon and hydrogen as well as
chemicals including catalysts, surfactants, and intermediates used to make polyurethane and containers.
This serves to reduce rivalry. Long term poor market growth tends to intensify the rivalry somewhat.
These combine to produce strong rivalry within industrial gas market.

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LEADING COMPANIES
LEADING COMPANIES
Airgas, Inc.
Table 4:
Airgas, Inc.: key facts
Head office:
Telephone:
Fax:
Local office:
Telephone:
Fax:
Website:
Financial year-end:
Ticker:
Stock exchange:
259 North Radnor-Chester Road, Suite 100, Radnor, Pennsylvania

19087 5283, USA
1 610 687 5253
1 610 687 1052
Airgas Canada, Bay 133, 3016 10th Avenue Northeast, Calgary,
Alberta T2A6A3, CAN
1 403 272 6605
1 403 248 0701
www.airgas.com
March
ARG
New York
Source: company website
DATAMONITOR
Airgas is a US-based distributor of industrial, medical, and specialty gases, and related hardgoods, such
as welding equipment and supplies. It markets these products through multiple sales channels including
branch-based sales representatives, retail stores, strategic customer account programs, telesales,
catalogs, eBusiness, and independent distributors. The company distributes its products through a
network of approximately 1,100 locations including branches, retail stores, packaged gas fill plants,
cylinder testing facilities, specialty gas labs, production facilities, and distribution centers. Airgas operates
in the US and Canada, and to a lesser extent in Mexico, Russia, Dubai, and Europe.
Airgas operates through two segments: distribution and all other operations.
The distribution segment's principal products include industrial, medical, and specialty gases sold in
packaged and small bulk quantities, as well as hardgoods. Gases include industrial, medical, and
specialty gases, such as nitrogen, oxygen, argon, helium, and hydrogen. It also includes welding and fuel
gases, such as acetylene, propylene and propane, carbon dioxide, nitrous oxide, ultra high purity grades,
special application blends, and process chemicals. The company rents gas cylinders, cryogenic liquid
containers, bulk storage tanks, tube trailers, and welding and welding-related equipment. Hardgoods
comprise welding consumables and equipment, safety products, construction supplies, and maintenance,
repair, and operating (MRO) supplies.

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LEADING COMPANIES
Airgas is also engaged in the sale of safety products. The company's internal production capacity
includes 16 air separation plants that produce oxygen, nitrogen, and argon. In addition, it purchases
industrial, medical, and specialty gases pursuant to requirement contracts from national and regional
producers of industrial gases and purchases hardgoods from major manufacturers and suppliers.
The distribution segment operates a network of multiple use facilities consisting of more than 875
branches, more than 325 cylinder fill plants, 63 regional specialty gas laboratories, eight national specialty
gas laboratories, one medical equipment facility, one research and development center, two specialty gas
equipment centers, 18 acetylene plants, and 16 air separation units. It also consists of six national
hardgoods distribution centers, various customer call centers, and buying centers. The segment conducts
business in 48 states and internationally in Canada, Mexico, Russia, Dubai, and Europe.
The all other operations segment comprises six business units. The primary products manufactured and
distributed are carbon dioxide, dry ice (solid form of carbon dioxide), nitrous oxide, ammonia, and
refrigerant gases.
The all other operations segment includes Airgas Specialty Products, a business unit which distributes
anhydrous and aqueous ammonia. Industrial ammonia applications primarily include the abatement of
nitrogen oxide compounds in the utility industry, chemicals processing, commercial refrigeration, water
treatment, and metal treatment. This segment also has businesses, located throughout the US, which
operate multiple-use facilities consisting of approximately 70 branch/distribution locations, five liquid
carbon dioxide and 11 dry ice production facilities, and four nitrous oxide production facilities.
Key Metrics
The company recorded revenues of $3,864 million in the fiscal year ending March 2010, a decrease of
11.2% compared to fiscal 2009. Its net income was $196 million in fiscal 2010, compared to a net income
of $261 million in the preceding year.
Table 5:
Airgas, Inc.: key financials ($)
$ million
Revenues
Net income (loss)
Total assets
Total liabilities
2006
2007
2008
2009
2,829.6
123.6
2,474.4
1,527.3
3,205.1
154.4
3,333.5
2,208.1
4,017.0
223.4
3,987.3
2,573.9
4,349.5
261.1
4,426.3
2,854.6
Source: company filings

2010
3,864.0
196.3
4,495.9
2,700.4
DATAMONITOR
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LEADING COMPANIES
Table 6:
Airgas, Inc.: key financial ratios
Ratio
Profit margin
Revenue growth
Asset growth
Liabilities growth
Debt/asset ratio
Return on assets
2006
2007
2008
2009
4.4%
19.5%
8.0%
3.4%
61.7%
5.2%
4.8%
13.3%
34.7%
44.6%
66.2%
5.3%
5.6%
25.3%
19.6%
16.6%
64.6%
6.1%
6.0%
8.3%
11.0%
10.9%
64.5%
6.2%
2010
5.1%
(11.2%)
1.6%
(5.4%)
60.1%
4.4%
DATAMONITOR
Figure 10: Airgas, Inc.: revenues & profitability

DATAMONITOR
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LEADING COMPANIES
Figure 11: Airgas, Inc.: assets & liabilities

DATAMONITOR
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LEADING COMPANIES
Praxair, Inc.
Table 7:
Praxair, Inc.: key facts
Head office:
Telephone:
Fax:
Local office:
Telephone:
Fax:
Website:
Financial year-end:
Ticker:
Stock exchange:
39 Old Ridgebury Road, Danbury, Connecticut 06810 5113, USA

1 203 837 2000
1 203 837 2001
Praxair Canada Inc., 1 City Centre Drive, Suite 1200, Mississauga
Ontario L5B 1M2, CAN
905 803 1600
905 803 1698
www.praxair.com
December
PX
New York
DATAMONITOR
Praxair is one of the largest industrial gases suppliers in North and South America. Praxair serves
approximately 25 industries, including healthcare and petroleum refining; computer-chip manufacturing
and beverage carbonation; fiber optics and steel making: and aerospace, chemicals, and water treatment.
The company operates in North America, South America, Europe, and Asia.
Praxair organizes its operations into five reportable segments, four of which have been determined on a
geographic basis of segmentation: North America, South America, Europe, and Asia. In addition, Praxair
operates its worldwide surface technologies business through its wholly owned-subsidiary, Praxair
Surface Technologies, which represents the fifth reportable segment.
Praxair's operations constitute two major product lines: industrial gases and surface technologies. The
industrial gases product line is catered through the four regional segments; namely North America, South
America, Europe, and Asia.
The industrial gases product line centers on the manufacturing and distribution of atmospheric gases
(oxygen, nitrogen, argon, and rare gases) and process gases (carbon dioxide, helium, hydrogen,
electronic gases, specialty gases, and acetylene). Praxair manufactures and distributes nearly all of its
products and manages its customer relationships on a regional basis. Praxair's industrial gases are
distributed to various end markets within a regional segment through one of the three basic distribution
methods: on-site or tonnage, merchant, and packaged or cylinder gases.

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LEADING COMPANIES
The North America segment operates production facilities in the US, Canada, and Mexico. Approximately
250 of these are cryogenic air separation plants, hydrogen plants, and carbon dioxide plants. There are
five major pipeline complexes in North America located in Northern Indiana, Houston, along the Gulf
Coast of Texas, Detroit, and Louisiana. In addition, packaged gas facilities, specialty gas plants, helium
plants, and other smaller plant facilities are located throughout North America.
The South America segment operates over 40 cryogenic air separation plants, primarily located in Brazil.
A majority of these plants support a major pipeline complex in Southern Brazil. In addition, carbon dioxide
plants, packaged gas facilities, and other smaller plant facilities are located throughout South America.
Praxair's European segment operates with production facilities in Italy, Spain, Germany, the Benelux
region, and France. These production facilities include over 50 cryogenic air separation plants. There are
three major pipeline complexes in Europe located in Northern Spain and the Rhine and Saar regions of
Germany. These pipeline complexes are primarily supported by cryogenic air separation plants. Several
specialty gas plants, packaged gas facilities, and other smaller plant facilities are also located throughout
Europe.
The Asia segment has production facilities located primarily in China, Korea, Thailand and India which
include about 35 cryogenic air separation plants. The production facilities located across Asia also include
noncryogenic air separation, carbon dioxide, hydrogen, packaged gas, and others.
Praxair's surface technologies segment supplies wear-resistant and high-temperature corrosion-resistant
metallic and ceramic coatings and powders to the aircraft, printing, textile, plastics, primary metals,
petrochemical, and other industries. It also manufactures a complete line of electric arc, plasma, and high
velocity oxygen fuel spray equipment as well as arc and flame wire equipment used for the application of
wear resistant coatings. The coatings extend wear life and are applied at Praxair's facilities using a variety
of thermal spray coatings processes.
The surface technologies segment provides coating services and manufactures coating equipment at
about 40 sites. Many of these sites are located in the US and Europe, with smaller operations in Asia and
Brazil.
Key Metrics
The company recorded revenues of $10,116 million in the fiscal year ending December 2010, an increase
of 13.0% compared to fiscal 2009. Its net income was $1,195 million in fiscal 2010, compared to a net
income of $1,254 million in the preceding year.

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LEADING COMPANIES
Table 8:
Praxair, Inc.: key financials ($)
$ million
Revenues
Net income (loss)
Total assets
Total liabilities
2006
2007
2008
2009
8,324.0
988.0
11,102.0
6,548.0
9,402.0
1,177.0
13,382.0
7,919.0
10,796.0
1,211.0
13,054.0
8,743.0
8,956.0
1,254.0
14,317.0
8,669.0
Table 9:
2010
10,116.0
1,195.0
15,274.0
9,129.0
DATAMONITOR
Praxair, Inc.: key financial ratios
Ratio
Profit margin
Revenue growth
Asset growth
Liabilities growth
Debt/asset ratio
Return on assets
2006
2007
2008
2009
11.9%
8.7%
5.8%
2.5%
59.0%
9.2%
12.5%
13.0%
20.5%
20.9%
59.2%
9.6%
11.2%
14.8%
(2.5%)
10.4%
67.0%
9.2%
14.0%
(17.0%)
9.7%
(0.8%)
60.6%
9.2%

2010
11.8%
13.0%
6.7%
5.3%
59.8%
8.1%
DATAMONITOR
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Page 25
LEADING COMPANIES
Figure 12: Praxair, Inc.: revenues & profitability
DATAMONITOR
Figure 13: Praxair, Inc.: assets & liabilities

DATAMONITOR
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Page 26
LEADING COMPANIES
Air Liquide SA
Table 10:
Air Liquide SA: key facts
Head office:
Telephone:
Fax:
Local office:
Telephone:
Fax:
Website:
Financial year-end:
Ticker:
Stock exchange:
75 Quai d'Orsay, 75321 Paris, FRA

33 1 4062 5555
33 1 4062 5526
Air Liquide Canada Inc, 1250 Boul Ren-Lvesque O, Bureau 1700,
Montral, QC, H3B 5E6, CAN
514 933 0303
514 846 7700
www.airliquide.com
December
AI
Paris
DATAMONITOR
Air Liquide specializes in the supply of industrial and medical gases and related services. The company
supplies oxygen, nitrogen, hydrogen, and other gases to a wide range of industries. These industries
include steel, oil refining, chemicals, glass, electronics, paper, welding, metallurgy, food-processing,
health care, and aerospace. Air Liquide operates in more than 75 countries across Europe, Americas,
Asia Pacific, and Africa and Middle East.
The company operates through three business segments: gas and services; engineering and
construction; and other activities.
The gas and services segment serves large industries such as refining, chemicals, energy, and
metallurgical industries besides industrial customers such as electronics, health care, and related
activities. Large industries include users of large volumes of industrial gases, while industrial customers
include industries, which use gases in small or medium quantities. In the electronics industry, the
company supplies semiconductor manufacturers with carrier and specialty gases, liquid chemicals, and
related equipment and installations. The health care business line is divided into three activity segments:
hygiene products, homecare, medical gases, and equipment. The health care business line serves more
than 6,000 hospitals and 500,000 homecare patients worldwide.
The engineering and construction segment designs air separation units and hydrogen and synthetic gas
production units. It also operates in the field of renewable technologies with biofuels, in alternative
technologies with methanol and derived products, and in traditional technologies with refining.

0070 - 2083 - 2010

Page 27
LEADING COMPANIES
The company is also engaged in other activities, including cryogenic and space, specialty chemicals,
welding, and manufacturing diving equipment. Through its cryospace subsidiary, Air Liquide
manufactures hydrogen and oxygen tanks for Ariane 5 rockets. The company's Seppic subsidiary
produces biological and specialty products for healthcare, cosmetics, and food industries, as well as a
number of industrial activities. The company is also engaged in providing welding services. It designs filler
materials, equipment, tool, and services for industrial manufacturers, artisans, and the general public to
cut and weld metals. Aqua Lung, Air Liquide's subsidiary, caters to three major markets, namely, sport
and leisure diving, military equipment, and aquatic sports.
Key Metrics
The company recorded revenues of $18,039 million in the fiscal year ending December 2010, an increase
income of $1,629 million in the preceding year.
Table 11:
Air Liquide SA: key financials ($)
$ million
Revenues
Net income (loss)
Total assets
Total liabilities
2006
2007
2008
2009
14,503.9
1,420.2
21,586.6
12,887.5
15,633.2
1,487.8
24,231.3
15,651.9
17,357.9
1,616.2
27,314.0
18,171.2
16,106.7
1,629.4
27,323.0
17,054.0
Table 12:
2010
18,039.2
1,859.4
29,855.9
17,784.4
DATAMONITOR
Air Liquide SA: key financials ()
million
Revenues
Net income (loss)
Total assets
Total liabilities
2006
2007
2008
2009
10,948.7
1,072.1
16,295.3
9,728.5
11,801.2
1,123.1
18,291.7
11,815.3
13,103.1
1,220.0
20,618.8
13,717.1
12,158.6
1,230.0
20,625.6
12,873.7

2010
13,617.4
1,403.6
22,537.6
13,425.1
DATAMONITOR
0070 - 2083 - 2010

Page 28
LEADING COMPANIES
Table 13:
Air Liquide SA: key financial ratios
Ratio
Profit margin
Revenue growth
Asset growth
Liabilities growth
Debt/asset ratio
Return on assets
2006
2007
2008
2009
9.8%
4.9%
0.0%
(3.5%)
59.7%
6.6%
9.5%
7.8%
12.3%
21.5%
64.6%
6.5%
9.3%
11.0%
12.7%
16.1%
66.5%
6.3%
10.1%
(7.2%)
0.0%
(6.1%)
62.4%
6.0%
2010
10.3%
12.0%
9.3%
4.3%
59.6%
6.5%
DATAMONITOR
Figure 14: Air Liquide SA: revenues & profitability

DATAMONITOR
0070 - 2083 - 2010

Page 29
LEADING COMPANIES
Figure 15: Air Liquide SA: assets & liabilities

DATAMONITOR
0070 - 2083 - 2010

Page 30
LEADING COMPANIES
Air Products and Chemicals, Inc.

Table 14:
Air Products and Chemicals, Inc.: key facts
Head office:
Telephone:
Fax:
Local office:
Telephone:
Fax:
Website:
Financial year-end:
Ticker:
Stock exchange:
7201 Hamilton Boulevard, Allentown, Pennsylvania 18195 1501, USA

1 610 481 4911
1 610 481 5900
Air Products Canada Ltd., 989 Derry Road East, Suite 102, Mississauga,
Ontario L5T 2J8, CAN
1 905 364 3064
1 905 364 3024
www.airproducts.com
September
APD
New York
DATAMONITOR
Air Products and Chemicals (Air Products) serves technology, energy, industrial, and healthcare
customers globally with its portfolio of products, services, and solutions that include atmospheric gases,
process and specialty gases, performance materials, equipment, and services. The company is one of the
largest suppliers of hydrogen and helium and has strong positions in the markets such as semiconductor
materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.
The company, through subsidiaries, affiliates and minority-owned ventures, conducts business in more
than forty countries outside the US. The company has majority or wholly-owned foreign subsidiaries that
operate in Canada, 17 European countries (including the UK and Spain), 10 Asian countries (including
China, Korea, Singapore, and Taiwan), and four Latin American countries (including Mexico and Brazil).
The company also owns less-than-controlling interests in entities operating in Europe, Asia, Africa, the
Middle East and Latin America (including Italy, Germany, China, Korea, India, Singapore, Thailand, South
Africa, and Mexico).
Air Products operates through four business segments: merchant gases, tonnage gases, electronics and
performance materials, and equipment and energy.
The company's merchant gases segment sells atmospheric gases such as oxygen, nitrogen and argon
(primarily recovered by the cryogenic distillation of air), hydrogen and helium (purchased or refined from
crude helium), and certain medical and specialty gases, along with certain services and equipment,
throughout the world. Its customers are in a number of industries, including those in metals, glass,

0070 - 2083 - 2010

Page 31
LEADING COMPANIES
chemical processing, food processing, healthcare, steel, general manufacturing, and petroleum and
natural gas.
The merchant gases segment currently operates over 170 facilities across the US and in Canada
(approximately 38 of which sites are owned), over 110 sites in Europe, including healthcare
(approximately half of which sites are owned), and over 75 facilities in seven countries within Asia and in
Brazil. Helium is recovered at sites in Kansas and Texas and distributed from several transfill sites in the
US, Europe, and Asia.
The tonnage gases segment provides hydrogen, carbon monoxide, nitrogen, oxygen, and synthesis gas
(syngas, a hydrogen-carbon monoxide mixture) primarily to the energy production and refining, chemical,
and metallurgical industries worldwide. Gases are produced at facilities located adjacent to customers'
facilities or by pipeline systems from centrally-located production facilities and are generally governed by
contracts with 15 to 20 year terms. The company is one of the world's largest providers of hydrogen,
which is used by oil refiners. The energy production industry uses nitrogen injection for enhanced
recovery of oil and natural gas and oxygen for gasification. The metallurgical industry utilizes nitrogen for
inerting and oxygen for the manufacture of steel and certain non-ferrous metals. The chemical industry
uses hydrogen, oxygen, nitrogen, carbon monoxide, and synthesis gas as feedstock in the production of
many basic chemicals.
The company delivers product through pipelines from centrally located facilities in or near the Texas Gulf
Coast, Los Angeles in California, Louisiana in Alberta, Canada, Rotterdam in the Netherlands, Southern
England and Northern England in the UK, Western Belgium, Ulsan in South Korea, Nanjing and
Tangshan in China, Kuan Yin in Taiwan, Singapore, and Camacari in Brazil. The company also owns less
than controlling interests in pipelines located in Thailand, Singapore, and South Africa.
The tonnage gases segment also includes a polyurethane intermediates (PUI) business. At its Pasadena,
Texas facility, the company produces dinitrotoluene (DNT) which is converted to toluene diamine (TDA)
and sold for use as an intermediate. This intermediate is used in the manufacture of a major precursor of
flexible polyurethane foam used in furniture cushioning, carpet underlay, bedding, and seating in
automobiles. Most of the company's TDA is sold under long-term contracts with raw material cost and
currency pass-through to a small number of customers.
The tonnage gases segment operates 50 plants in the US and Canada that produce more than 300
standard tons-per-day of product. Over 30 of these facilities produce or recover hydrogen, many of which
support the three major pipeline systems located along the Gulf Coast of Texas, on the Mississippi River
corridor in Louisiana; in Los Angeles, California; and Alberta, Canada. The tonnage gases segment
includes a facility in Pasadena, Texas that produces polyurethane intermediate products. The segment
also operates over 30 tonnage plants in Europe and 17 tonnage plants within Asia, the majority of which
are on leased type long term structured agreements.

0070 - 2083 - 2010

Page 32
LEADING COMPANIES
The equipment and energy segment designs and manufactures cryogenic and gas processing equipment
for air separation (utilizing membrane technology and adsorption technology), hydrocarbon recovery and
purification, natural gas liquefaction (LNG), and helium distribution (cryogenic transportation containers).
It serves energy markets in several ways.
Equipment is sold globally to customers in the chemical and petrochemical manufacturing, oil and gas
recovery and processing, and steel and primary metals processing industries. The segment also provides
a range of plant design, engineering, procurement, and construction management services to its
customers.
Energy markets are served through the company's operation and partial ownership of cogeneration and
flue gas desulphurization facilities and its development of hydrogen as an energy carrier and oxygenbased technologies to serve energy markets in the future. The company owns and operates a
cogeneration facility in Calvert City, Kentucky; owns and operates 50% interests in a 49 megawatts (MW)
fluidized-bed coal-fired power generation facility in Stockton, California; and a 24 MW gas-fired combinedcycle power generation facility near Rotterdam, the Netherlands. The company also operates and owns a
47.9% interest in a 112 MW gas-fueled power generation facility in Thailand. The company also operates
and owns a 50% interest in a flue gas desulphurization facility in Indiana.
The equipment and energy segment operates seven manufacturing plants and two sales offices in the
US. The company manufactures a significant portion of the world's supply of liquefied natural gas (LNG)
equipment at its Wilkes-Barre, Pennsylvania site. Air separation columns and cold boxes for companyowned facilities and third party sales are produced by operations in Acrefair in the UK, Istres in France,
and Caojing in China, as well as in the Wilkes-Barre facility when capacity is available. Cryogenic
transportation containers for liquid helium are manufactured and reconstructed at facilities in eastern
Pennsylvania and Liberal, Kansas.
Electric power is produced at various facilities including Stockton in California, Calvert City in Kentucky,
and Rotterdam in the Netherlands. Flue gas desulphurization operations are conducted at the Pure Air
facility in Chesterton, Indiana. Additionally, the company owns a 47.9% interest in a gas-fueled power
generation facility in Thailand. The company or its affiliates own approximately 50% of the real estate in
this segment and lease the remaining 50%.
Key Metrics
The company recorded revenues of $9,026 million in the fiscal year ending September 2010, an increase
income of $631 million in the preceding year.

0070 - 2083 - 2010

Page 33
LEADING COMPANIES
Table 15:
Air Products and Chemicals, Inc.: key financials ($)
$ million
Revenues
Net income (loss)
Total assets
Total liabilities
2006
2007
2008
2009
8,752.8
723.0
11,181.0
6,256.7
10,037.8
1,035.6
12,659.5
6,986.6
10,414.5
909.7
12,571.0
7,404.4
8,256.2
631.3
13,029.1
8,099.1
Table 16:
2010
9,026.0
1,029.1
13,505.9
7,808.3
DATAMONITOR
Air Products and Chemicals, Inc.: key financial ratios
Ratio
Profit margin
Revenue growth
Asset growth
Liabilities growth
Debt/asset ratio
Return on assets
2006
2007
2008
2009
8.3%
14.1%
7.4%
6.7%
56.0%
6.7%
10.3%
14.7%
13.2%
11.7%
55.2%
8.7%
8.7%
3.8%
(0.7%)
6.0%
58.9%
7.2%
7.6%
(20.7%)
3.6%
9.4%
62.2%
4.9%

2010
11.4%
9.3%
3.7%
(3.6%)
57.8%
7.8%
DATAMONITOR
0070 - 2083 - 2010

Page 34
LEADING COMPANIES
Figure 16: Air Products and Chemicals, Inc.: revenues & profitability
DATAMONITOR
Figure 17: Air Products and Chemicals, Inc.: assets & liabilities

DATAMONITOR
0070 - 2083 - 2010

Page 35
MARKET FORECASTS
MARKET FORECASTS
In 2015, the Canadian industrial gases market is forecast to have a value of $902.9 million, a decrease of
5.7% since 2010.
The compound annual rate of change of the market in the period 201015 is predicted to be -1.2%.
Table 17:
Year
$ million
C$ million
million
2010
2011
2012
2013
2014
2015
957.6
872.7
880.0
887.3
894.9
902.9
987.0
899.6
907.0
914.6
922.4
930.6
721.3
657.4
662.8
668.3
674.1
680.1
CAGR: 201015
Source: Datamonitor
% Growth
24.3%
(8.9%)
0.8%
0.8%
0.9%
0.9%
(1.2%)
DATAMONITOR
Figure 18: Canada industrial gases market value forecast: $ million, 201015
Source: Datamonitor

DATAMONITOR
0070 - 2083 - 2010

Page 36
Table 18:
Canada size of population (million), 200610
Year
Population (million)
2006
2007
2008
2009
2010
32.6
32.9
33.3
33.7
34.1
Source: Datamonitor
Table 19:
DATAMONITOR
Canada gdp (constant 2000 prices, $ billion), 200610
Year
Constant 2000 Prices, $ billion
2006
2007
2008
2009
2010
845.3
863.9
868.3
846.8
872.0
Source: Datamonitor
Table 20:
% Growth
1.0%
1.1%
1.2%
1.2%
1.1%
% Growth
2.9%
2.2%
0.5%
(2.5%)
3.0%
DATAMONITOR
Canada gdp (current prices, $ billion), 200610
Year
Current Prices, $ billion
2006
2007
2008
2009
2010
1,266.5
1,396.2
1,446.2
1,320.1
1,383.4
Source: Datamonitor

% Growth
12.1%
10.2%
3.6%
(8.7%)
4.8%
DATAMONITOR
0070 - 2083 - 2010

Page 37
Table 21:
Canada inflation, 200610
Year
Inflation Rate (%)

2.0%
2.1%
2.4%
0.3%
1.8%
2006
2007
2008
2009
2010
Source: Datamonitor
Table 22:
DATAMONITOR
Canada consumer price index (absolute), 200610
Year
Consumer Price Index (2000 = 100)

114.4
116.9
119.7
120.0
122.1
2006
2007
2008
2009
2010
Source: Datamonitor
Table 23:
DATAMONITOR
Canada exchange rate, 200610
Year
Exchange rate ($/C$)
2006
2007
2008
2009
2010
1.1346
1.0744
1.0667
1.1417
1.0308
Source: Datamonitor

Exchange rate (/C$)

1.4236
1.4701
1.5608
1.5876
1.3684
DATAMONITOR
0070 - 2083 - 2010

Page 38
APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitors in-house databases provide the foundation for all related industry profiles
Preparatory research We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
-
National/Governmental statistics
International data (official international sources)
National and International trade associations
Broker and analyst reports
Company Annual Reports
Business information libraries and databases
Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date

0070 - 2083 - 2010

Page 39
APPENDIX
Industry associations
Compressed Gas Association, Inc.
4221 Walney Road, 5th Floor, Chantilly - VA 20151-2923, USA
Tel.: 001 703 788 2700
Fax: 001 703 961 1831
www.cganet.com
Further reading
Industrial Gases in North America
Industrial Gases in the United States
Industrial Gases in Western Europe
Industrial Gases in Eastern Europe
Industrial Gases in Asia-Pacific

0070 - 2083 - 2010

Page 40
APPENDIX
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form
by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, Datamonitor plc.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.
Please note that the findings, conclusions and recommendations that Datamonitor delivers will be
based on information gathered in good faith from both primary and secondary sources, whose
accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability
whatever for actions taken based on any information that may subsequently prove to be incorrect.

0070 - 2083 - 2010

Page 41
ABOUT DATAMONITOR
ABOUT DATAMONITOR
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0070 - 2083 - 2010

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INDUSTRY PROFILE

Canada - Industrial Gases

Datamonitor Middle East

Datamonitor Asia Pacific

t: +49 69 9754 4517

t: +61 2 8705 6900

0070 - 2083 - 2010

Market value forecast

Canada - Industrial Gases

0070 - 2083 - 2010

FIVE FORCES ANALYSIS

Air Products and Chemicals, Inc.

Market value forecast

Canada - Industrial Gases

0070 - 2083 - 2010

Canada - Industrial Gases

0070 - 2083 - 2010

Canada industrial gases market value: $ million, 200610

Canada industrial gases market segmentation I:% share, by value, 2010

Canada industrial gases market segmentation II: % share, by value, 2010

Airgas, Inc.: key facts

Airgas, Inc.: key financials ($)

Airgas, Inc.: key financial ratios

Praxair, Inc.: key facts

Praxair, Inc.: key financials ($)

Praxair, Inc.: key financial ratios

Air Liquide SA: key facts

Air Liquide SA: key financials ($)

Air Liquide SA: key financials ()

Air Liquide SA: key financial ratios

Air Products and Chemicals, Inc.: key facts

Air Products and Chemicals, Inc.: key financials ($)

Air Products and Chemicals, Inc.: key financial ratios

Canada industrial gases market value forecast: $ million, 201015

Canada size of population (million), 200610

Canada gdp (constant 2000 prices, $ billion), 200610

Canada gdp (current prices, $ billion), 200610

Canada inflation, 200610

Canada consumer price index (absolute), 200610

Canada exchange rate, 200610

Canada - Industrial Gases

0070 - 2083 - 2010

Canada industrial gases market value: $ million, 200610

Canada industrial gases market segmentation I:% share, by value, 2010

Canada industrial gases market segmentation II: % share, by value, 2010

Forces driving competition in the industrial gases market in Canada, 2010

Drivers of buyer power in the industrial gases market in Canada, 2010

Drivers of supplier power in the industrial gases market in Canada, 2010

Drivers of degree of rivalry in the industrial gases market in Canada, 2010

Airgas, Inc.: revenues & profitability

Airgas, Inc.: assets & liabilities

Praxair, Inc.: revenues & profitability

Praxair, Inc.: assets & liabilities

Air Liquide SA: revenues & profitability

Air Liquide SA: assets & liabilities

Air Products and Chemicals, Inc.: revenues & profitability

Air Products and Chemicals, Inc.: assets & liabilities

Canada industrial gases market value forecast: $ million, 201015

Canada - Industrial Gases

0070 - 2083 - 2010

Canada - Industrial Gases

0070 - 2083 - 2010

Canada - Industrial Gases

0070 - 2083 - 2010