Steel Mills
Cryogenic Cylinders a Billion Dollar Market
Written by Sandy Williams
November 19, 2013
Worthington Industries is poised to take advantage of the natural gas boom through production of pressure cylinders and gas processing units. About a third of Worthington’s profits are derived from their pressure cylinder segment. Worthington has five Ohio facilities and, with proximity to the Marcellus and Utica shale plays, has begun the manufacture of cryogenic (stainless) tanks used for the storage and transportation of liquefied natural gas (LNG).
In September 2012, Worthington acquired Westerman Companies, a supplier of oil and gas separators, production units and related wellhead equipment and the only North American manufacturer of enriched uranium hexafluoride (UF6) storage and transportation cylinders for the nuclear industry. Westerman has production facilities in Bremen and Wooster, Ohio.
The Bremen facility, which manufactures large tanks, is working towards the production of cryogenic tanks for the storage and transpiration of liquefied natural gas (LNG). The Wooster facility, responding to demand from the oil and gas industry, plans to triple its production of gas processing units (GPU) in the next three to five years. Worthington’s Westerville facility, known for its gas grill cylinder product, recently shipped its first order of cryogenic tanks.
“Cryogenics is a natural extension of our legacy high pressure cylinder capabilities and our more recent entry into the CNG (compressed natural gas) alternative fuel storage tank business,” said Worthington CEO John McConnell in the FY2013 annual report. “We will continue to explore investment opportunities to capitalize on the shale gas boom, which we believe has a long way to run.”
A recent report by Key Banc forecast alternative fuel cylinders, currently around $80 million in sales per year, to reach double digit growth in the next three to five years due to an increase in natural gas vehicles. As a result cryogenic LNG cylinders are expected to be a $1 billion market.
Worthington Industries started in 1955 and continues to be led by founder and CEO John P. McConnell. Its three primary business segments are steel processing (58 percent), pressure cylinders (33 percent) and engineered cabs (9 percent). The company has over 10,000 employees in 82 facilities in 11 countries.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Goncalves sees more US trade actions ahead, says Nippon deal for USS has ‘zero chance’
Cleveland-Cliffs’ Lourenco Goncalves thinks trade measures announced by the US government on Tuesday against China were just the opening salvo in a series of trade actions. Case in point: The Biden administration targeted China’s “unfair” trade policies with additional tariffs on an array of Chinese-made goods - including steel, aluminum, and EVs.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.