Praxair Wins Three Contracts - Analyst Blog

Praxair Electronics, Praxair Inc's (PX) Chinese unit, was recently awarded three contracts in China. Among the three, the first one was from ShanXi LuAn Solar Energy for the silane, ammonia and bulk atmospheric gases.

The second was from Changzhou Trina Solar Energy Co. Ltd. for the supply of silane and finally the last came from Realforce Solar, a subsidiary of Realforce Group, for silane and ammonia gas.

Praxair at present has more than 15 such contracts on hand and this is going to take Praxair to a different level because countries in general are trying to diversify their energy needs to include solar. 

Praxair is one of the leading industrial gas producers operating primarily in North America, South America, Europe, and Asia. We believe Praxair has significant growth opportunities in diverse markets and its concerted effort in increasing exposure and tapping opportunities in emerging markets is also very encouraging.

We consider the growth prospects of industrial gas producers as very bright going forward, with ever rising demand for gases due to their wide application areas. Industrial gases are being increasingly used by the chemical processing and petroleum refining, metal production and fabricating, and electronics and health care industries.

As the economy emerges from the recent global crisis, requirement for industrial gases is expected to grow. Moreover, the company has an extensive pipeline of projects with backlog expected to be on the rise.

The company is scheduled to release its fourth quarter results on January 26, 2011. The stock currently retains its Zacks #3 Rank, equivalent to a short-term Hold rating.