Industrial gas company Air Products & Chemicals Inc. (APD) announced that it will launch its new product, Deposilk Q1 Polymer at In Cosmetics in Milan, Italy, on March 29.
Deposilk Q1 Polymer is a new offering that empowers formulations through superior deposition of ingredients and excellent sensory aesthetics. Deposilk polymers possesses several other properties like rheology stability benefits, wide compatibility including pH and surfactant systems, improved emulsion stability, film formation and a mild non-irritating nature.
The new product with its wide range of solutions offers improved formulation performance that can provide tangible label claims or greater efficacy that consumers notice.
Products with the silky and smooth feel notably improve deposition of silicone and anti-aging ingredients on skin or hair. This naturally enhances greater product efficacy and consumer delight. It provides more effective silicone benefits, such as conditioning and emollience, as well as surfactant compatibility.
Deposilk also has simpler formulations containing fewer ingredients, precisely what consumers desire. It is also consistently able to deliver benefits across systems, viscosities, pH levels and application areas.
Along with Deposilk, Air Products will also be marketing its entire range of personal care polymers, comprising Intelimer polymers and Hybridur materials at booth T75 at In-Cosmetics in Milan from March 29-31.
Based in Pennsylvania, Air Products is benefiting from a long-term take-or-pay contract, a consolidated industry structure, a diverse customer base and sustained pricing power. Air Products’ aggressive cost cutting and productivity initiatives, combined with its portfolio realignment efforts, have helped mitigate fixed cost headwinds, which is very encouraging.
However, soaring energy and raw material costs pose a threat to margin expansion. In order to compensate for escalating raw material costs Air Products has been increasing the price for a range of chemicals it makes for industrial use.
About two weeks ago the company announced a hike in price for its Tomamine surfactant, TomadryT surfactant and TomadyneT surfactant by 5 cents per pound. It also announced a price increase for Tomadol surfactant, Nonidet surfactant and Nonatell surfactant by 4 cents per pound. The price increases will be effective from the first week of April 2011.
Air Products, on the one hand, is bogged down in debt. On the other hand, the company expects to continue raising debt in an effort to fund new projects and refinance maturing debt.
Air Products faces stiff competition from Praxair Inc. (PX) and The Linde Group.
AIR PRODS & CHE (APD): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
Zacks Investment Research
