Special Gases – Opportunity or a Crowded S pace within MENA Region? Chris Street

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Special Gases – Opportunity or a Crowded S pace within MENA Region? Chris Street Chief Executive Scientific and Technical Gases. Chris Street – Background. 1983 – 1986 BSc. Mechanical Engineering + MBA 1986 - 1991 Air Products – Speciality Gases Sales and Engineering - PowerPoint PPT Presentation

Transcript of Special Gases – Opportunity or a Crowded S pace within MENA Region? Chris Street

Page 1: Special Gases –  Opportunity  or  a Crowded  S pace within MENA Region? Chris Street
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• 1983 – 1986 1983 – 1986 BSc. Mechanical Engineering + MBA BSc. Mechanical Engineering + MBA

• 1986 - 1991 1986 - 1991 Air Products – Speciality Gases Sales and EngineeringAir Products – Speciality Gases Sales and Engineering

• 1992 - 1997 1992 - 1997 Engineering Contracting for 5 yearsEngineering Contracting for 5 years

• 1998 - 2006 1998 - 2006 Air Liquide – Director Calgaz. Set up Calgaz Air Liquide – Director Calgaz. Set up Calgaz in Europe, Middle East, Africa and Singapore in Europe, Middle East, Africa and Singapore

Hub for AsiaHub for Asia

• 20072007 Acquired controlling interest in StGAcquired controlling interest in StG

• 20092009 Took over as MD / Chief ExecutiveTook over as MD / Chief Executive

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• Founded in 1996Founded in 1996• Manufacturers of Calibration Gas Mixtures inManufacturers of Calibration Gas Mixtures in refillable and Non-Refillable Cylindersrefillable and Non-Refillable Cylinders• Sales to over 72 countries worldwideSales to over 72 countries worldwide• Manufacturing Operations in UK and DubaiManufacturing Operations in UK and Dubai• Winner of 2013 – Sentinel “International Trade Award”Winner of 2013 – Sentinel “International Trade Award”

• MarketsMarkets• Marine, Gas Detection, Oil, Gas, Petrochemical, Marine, Gas Detection, Oil, Gas, Petrochemical,

Laboratory & AnalyticalLaboratory & Analytical• Global Distribution HubsGlobal Distribution Hubs

• UK, Rotterdam, Dubai, Shanghai, Singapore,UK, Rotterdam, Dubai, Shanghai, Singapore, Rio, Sydney, Perth and HoustonRio, Sydney, Perth and Houston

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• High Purity Gases – He, Ar, H2 N2 (5.0 to 6.0 grades)High Purity Gases – He, Ar, H2 N2 (5.0 to 6.0 grades)• Liquid HeliumLiquid Helium• Mixtures Mixtures

• Simple Mixtures – percentage range through to PPM / PPB levelsSimple Mixtures – percentage range through to PPM / PPB levels• Hydrocarbon Mixtures Hydrocarbon Mixtures • Gravimetric filling for accuracy of mixture and traceable analysisGravimetric filling for accuracy of mixture and traceable analysis• Laser mixturesLaser mixtures

• Rare Gases (Xenon, Krypton etc) / Bulk Gases (e.g. Chlorine)Rare Gases (Xenon, Krypton etc) / Bulk Gases (e.g. Chlorine)• Medical Reference GasesMedical Reference Gases

Generally NOT Semi Conductor, Welding, Medical, Laser or Industrial uses Generally NOT Semi Conductor, Welding, Medical, Laser or Industrial uses

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• Oil, Gas and PetrochemicalOil, Gas and Petrochemical• Analytical Gases – carrier gases and calibration gases. Analytical Gases – carrier gases and calibration gases. • MRI / Super conductivityMRI / Super conductivity• Laboratory and ResearchLaboratory and Research• Environmental Compliance and MonitoringEnvironmental Compliance and Monitoring• Food and Beverage preparationFood and Beverage preparation• Safety Testing and CalibrationSafety Testing and Calibration• Engine Emission and Air Monitoring TestingEngine Emission and Air Monitoring Testing• LightingLighting• Medical Device Calibration + many othersMedical Device Calibration + many others

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Air ProductsAir ProductsLindeLinde

Air LiquideAir LiquidePraxairPraxair

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• Almost impossible to define and evaluate. Best to evaluate niches and Almost impossible to define and evaluate. Best to evaluate niches and industry applicationsindustry applications

• Generally estimated at 5-10% the value of the industrial gas of each Generally estimated at 5-10% the value of the industrial gas of each major playermajor player

• Key marketsKey markets– KSA largest, huge potential KSA largest, huge potential throughout GCC and MENA throughout GCC and MENA

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• Tier one companies investing heavily into industrial gases in the region:Tier one companies investing heavily into industrial gases in the region:– Air Separation Units Air Separation Units – CO2 manufactureCO2 manufacture– Argon productionArgon production– AcquisitionAcquisition

• Limited investment into Special Gas production Limited investment into Special Gas production

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• Abdullah Hashim (AHG) Abdullah Hashim (AHG) • BuzwairBuzwair• Bristol Special Gases / StGBristol Special Gases / StG• NIGPNIGP• Gulf CryoGulf Cryo• EIGCEIGC

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Customer Service LevelsCustomer Service LevelsLogistics Logistics PricingPricing

Safety and QualitySafety and Quality

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• Service levels offered by some MENA Spec Gas companies are sub-Service levels offered by some MENA Spec Gas companies are sub-optimaloptimal

• Majority of Special Gas mixtures are imported from outside the region Majority of Special Gas mixtures are imported from outside the region (Europe or USA) giving long lead times(Europe or USA) giving long lead times

• Time zone / working week issues with Europe / USA responsesTime zone / working week issues with Europe / USA responses• Trading / Intermediary companiesTrading / Intermediary companies

– Claim local supply / repackagingClaim local supply / repackaging– Often low quality sourced productOften low quality sourced product– Limited technical knowledgeLimited technical knowledge

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• Cross border trade – border delays and fee complexity adding to delays Cross border trade – border delays and fee complexity adding to delays and priceand price

• Difficulty in obtaining and understanding the requisite permits and Difficulty in obtaining and understanding the requisite permits and approvals for producing, shipping and storing gas country by approvals for producing, shipping and storing gas country by

countrycountry

• BureaucracyBureaucracy

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• Purchasers treat Special Gases as a commodity – therefore price driven Purchasers treat Special Gases as a commodity – therefore price driven downdown

• Customer needs education on placing a value on qualityCustomer needs education on placing a value on quality• Imported products have higher costsImported products have higher costs• No rental charges - leads to cylinder loss and there is little No rental charges - leads to cylinder loss and there is little

understanding of the asset value in prices offered in the marketunderstanding of the asset value in prices offered in the market• Traders, with little or no technical knowledge, in danger of bringing Traders, with little or no technical knowledge, in danger of bringing

down the value of the market through price tradingdown the value of the market through price trading

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• Non-reputable / short term companies Non-reputable / short term companies – Questionable qualityQuestionable quality– Not manufactured to accepted industry standardsNot manufactured to accepted industry standards– No legitimate traceability and safety data availabilityNo legitimate traceability and safety data availability

• Poor quality is an accident waiting to happenPoor quality is an accident waiting to happen

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Customer expectations on product quality, reliability and delivery continue Customer expectations on product quality, reliability and delivery continue to increase providing both a threat and an opportunity for Specialty Gas to increase providing both a threat and an opportunity for Specialty Gas

supplier companies.supplier companies.

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Successful Speciality Gas companies recognise that they must:Successful Speciality Gas companies recognise that they must:

• Adhere to “industry best practice” with regards toAdhere to “industry best practice” with regards to technical and safety standardstechnical and safety standards• Offer an excellent, consistent and on-going customer service experienceOffer an excellent, consistent and on-going customer service experience• Place a premium on training and developing a Logistics team that Place a premium on training and developing a Logistics team that

understand the rules and regulations with regards to Dangerous Goods understand the rules and regulations with regards to Dangerous Goods TransportationTransportation

• Educate the market place about the true value of qualityEducate the market place about the true value of quality

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• Major growth potential for Specialty Gas in the next 10 years. Driven by Major growth potential for Specialty Gas in the next 10 years. Driven by economic and infrastructural growth across the regioneconomic and infrastructural growth across the region

• Greater requirements for specialist, niche products, greater traceability Greater requirements for specialist, niche products, greater traceability and improved technical expertise from the suppliersand improved technical expertise from the suppliers

• Key drivers include, greater safety legislation and the freeing up of cross Key drivers include, greater safety legislation and the freeing up of cross border tradeborder trade

• Financial and technical investment required in local advanced Financial and technical investment required in local advanced manufacturing / laboratory facilitiesmanufacturing / laboratory facilities

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