Airgas To Increase Argon Prices

Airgas' CEO says limited investments in new argon capacity and overall production haven't kept pace with demand.

RADNOR, Pa. β€” Airgas, Inc. (NYSE: ARG), one of the nation's leading suppliers of industrial, medical, and specialty gases, and related products, announced Wednesday that its operating units will increase prices on argon by up to 15 percent, effective Nov. 1 or as contracts permit. Price adjustments may vary based on specific market conditions or contractual provisions.

β€œIn recent years, there has been limited investment in new argon capacity in the U.S., and overall argon production has not been keeping pace with demand at a time when increasing activity in energy and infrastructure construction is driving up demand for the product. As a result, our costs to secure and distribute argon from where we receive it to where it is needed by our customers are increasing,” said Airgas Chief Executive Officer Michael L. Molinini. β€œWe continue to invest in production capacity and infrastructure to serve our customers as efficiently as possible and further ensure the reliability of our supply chain, but increasing demand for argon is likely to result in continued pressure on product and distribtion costs for the foreseeable future.”

Airgas, Inc., through its subsidiaries, is one of the nation's leading suppliers of industrial, medical and specialty gases, and hardgoods, such as welding equipment, and related products. Airgas is a leading U.S. producer of atmospheric gases with 16 air separation plants, a leading producer of carbon dioxide, dry ice, and nitrous oxide, one of the largest U.S. suppliers of safety products, and a leading U.S. supplier of refrigerants, ammonia products, and process chemicals. More than 16,000 associates work in approximately 1,100 locations. For more information, please visit www.airgas.com.

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