Nikkiso acquires Cryogenic Industries

SAN DIEGO, California—Nikkiso Co. Ltd., which is involved in advanced technologies for industrial, clean energy, aerospace and medical markets, has closed the acquisition of Cryogenic Industries Inc. of Temecula, California, US and Cryogenic Industries AG of Basel, Switzerland, consisting of all its operations.

Cryogenic Industries, a group consisting of original technology brands ACD, Cosmodyne, and Cryoquip, has more than 40 yr of experience in the engineering and manufacturing of cryogenic equipment. It is a leading supplier to the industrial gases and natural gas markets, two major forecasted growth markets.

Nikkiso's objective is to offer products and services which offer advanced original technology to focused market segments. Cryogenic Industries as a group shares similar objectives and aligns with the Nikkiso global strategy.

Under the global economic outlook for the key target markets that Cryogenic Industries services, the industrial gases sector is anticipated to grow at a rate of 6.2% in the coming 5 yr, from $53.2 B in 2016 to $67.7 B in 2020.

Meanwhile, global LNG expenditures are forecast to total of $284 B between 2017 and 2021. This represents a 50% growth compared with the preceding 5-yr period.

The market share for LNG-fueled ships is expected to grow up to 13% in the commercial ship market by 2025, while market share for LNG as a marine fuel is also expected to see greater growth. The increase is projected to result in LNG fuel expenditures of $41.5 MM in 2017 to $492.6 MM in 2025.

Aside from expected market development, the acquisition will offer the joint group of Nikkiso companies going forward opportunities for alignment of activities and efficiency improvements.

A substantial part of the strategic growth plan, beside diversification and innovation, is to benefit through strong market positions of each group in Japan, the US, Europe, China and India.

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