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Acquisition in Russia: Lentechgas, leader on the North-West industrial gas market
Russia’s North West Region is the 2nd largest in the country in terms of industrial production. It is the key area for the Russian automotive, shipyard and food industries, which are fast growing markets that require increasing amounts of gases. This region accounts for about 10% of Russia’s total population and therefore, the market for medical gases is also already significant and growing.
Air Liquide has just completed the acquisition of the Lentechgas company located in Saint Petersburg. Lentechgas is market leader in the North-West with significant market share in bulk and packaged industrial gases and a strong position in healthcare. Today, Lentechgas employs over 200 employees and its turnover exceeded €10 million in 2011.
Air Liquide already has a cylinder activity in Saint Petersburg and this acquisition of the regional leader will significantly expand its footprint in this very important region.
Air Liquide will invest in a new state-of-the-art Air Separation Unit with a production capacity of 200 tonnes per day of liquid oxygen and nitrogen. Overall investment for this facility will amount to around €40 million.
Guy Salzgeber, Vice-President, North and Central Europe, and member of the Air Liquide Executive Committee, commented: “We are delighted to welcome these new employees into the Group. Russia is a growing economy in the process of modernizing its industrial production infrastructure. Air Liquide is glad to take part in this new development. Following the acquisition of Logika in Moscow earlier in 2012, this operation further strengthens our overall position in Russia. It illustrates our strategy of focusing geographic expansion on key growth regions. Developing economies are one of the growth drivers of the Group.”
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© Air Liquide 2019