Jumping Off a Cliff

“If everyone else jumped off a cliff, would you?” What parent has not said that to a wayward child? The wayward child that is Air Products is not fazed by that statement.

A report from Yale University released last week lists 147 US corporations that are pulling out of Russia completely as a result of the Ukraine invasion. Another 173 are suspending operations there. 70 US corporations are scaling back operations. A mere 24 are standing pat with Putin and his pals. That Fearless 24 includes good old Air Products. It makes company alumni like me ashamed.

What is Air Products providing Russia? Years ago, we patented technology for heat exchangers that liquefy natural gas. We currently manufacture those heat exchangers in Florida. The things are massive, 10 feet in diameter by 100 feet long. They are transported in special double railcars overland and in custom ships across the seas. Three heat exchangers are running now in Siberia producing 16.5 metric tons of LNG per year for export from Russia to Japan. Putin and his pals are lining their pockets with lots of yen as a result.

Air Products’ business model is to lease LNG equipment and technology to customers. We provide maintenance and emergency services and spare parts. The LNG guys in Allentown always kept a bag packed to respond to a crisis in Algeria, Indonesia, Saudi Arabia, or Russia. Natural gas deposits tend to cluster in nasty parts of the world.

Air Products has not issued a statement in response to the Yale University report. When they do, I hope it is not “Everyone else is jumping off a cliff in Russia, but not us.”

By Ed Dufton