Praxair China, Chinese arm of Praxair, Inc. (PX) signed a contract with Tangshan Railway Vehicle Co., Ltd., a subsidiary of China Northern Locomotive & Rolling Stock Industry Group (CNR), to supply welding gases used in the production of its newest high-speed train, with a top speed of 350 kilometers per hour.
Praxair China will supply a laser welding gas mixture, which is used for the manufacture of the vehicle body of the state-of-the-art express train. During project evaluation, Praxair China will meet the very strict technical and safety standards that are required for the welding gas mixture.
Prior to this contract, Praxair China had supplied welding gases to Tangshan Railway Vehicle for its 300-kilometers-per-hour high-speed train production.
Praxair’s motive behind expanding into China is that it is expecting a modest growth in the emerging economies of Brazil, China and India based on its existing project backlog and the current levels of new projects and business development. Currently, the project backlog stands at 40 large projects with a record capital value of over $2 billion.
Praxair’s intense focus on continuously expanding its reach in its operating regions and adding new customers to its existing spheres of business have accelerated its profit growth, which should continue in future. Furthermore, Praxair is likely to benefit from the favorable economic environment, given its broad end-market exposure to food and beverage, steel, glass, and chemicals.
For the first quarter and full year 2010, Praxair expects an adjusted EPS in the range of $1.05 to $1.10 and $4.43 to $4.63 respectively. Annual sales are expected to be $10 billion in 2010.
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