LEHIGH VALLEY, US: Air Products said that it will exit its energy-from-waste (EfW) business. As a result, the EfW business segment will be accounted for as a discontinued operation effective in the company’s second fiscal quarter. Also in the second quarter, Air Products expects to record a pre-tax charge in the range of $900 million to $1.0 billion in discontinued operations, primarily to write down assets associated with the EfW business to their realizable value.
Air Products’ management has communicated the challenges with the Tees Valley, UK projects. Testing and analysis completed during the company’s fiscal second quarter indicated that additional design and operational challenges would require significant time and cost to rectify. Consequently, the board of directors has decided that it is no longer in the best interest of the company and its shareholders to continue the Tees Valley projects. Air Products will work to optimize the cash value of its investments. Exiting the EfW business will allow the company to direct its resources to its core business of industrial gases.
“Air Products is focused on our core industrial gas business. We pushed very hard to make this new EfW technology work and I would like to thank the team who worked so diligently. We are also disappointed with the outcome,” said Seifi Ghasemi, chairman, president and CEO, Air Products.
© Worldofchemicals News
Read the latest news on Air Products:
Air Products to provide Prism membrane separators in China