The Air Liquide Group announced yesterday that it is setting up a new strategic investment in China. The main objective of this project is to help it strengthen its position in the electronics sector. However, despite this news, the stock ended Monday's session lower. Let's go over the details of this news.
The first piece of news to remember about Air Liquide shares concerns an announcement made yesterday by the group indicating that the company is preparing to invest more than 70 million euros in China in the electronics sector.
More specifically, this investment will be used to finance the construction of a new generation industrial gas production unit in Wuhan in central China. This production unit will then be used to supply a major producer of flash memory chips. Indeed, the Air Liquide Group produces ultra high purity gases for this Chinese high-tech company within the framework of a partnership dating back more than 12 years.
As part of this project, the Group will build, own and operate this new ultra high purity gas production unit, which has been designed using Air Liquide's latest state-of-the-art technologies. The facility will be able to produce more than 52,000 Nm3 of nitrogen per hour as well as oxygen, argon and other ultra high purity gases. It should be fully operational by 2022.
But the other objective of this investment is of course to support the development of the semiconductor sector in the Wuhan industrial basin, which will enable Air Liquide to benefit from a new major long-term supply agreement with this semiconductor manufacturer.
Indeed, in recent years, the city of Wuhan in China has been very active in supporting the development of a high-tech cluster dedicated in particular to the NAND flash memory chip industry.
Another piece of information to remember is the decline in Air Liquide's share price. Indeed, despite this encouraging announcement from a strategic point of view, the share price ended the Monday session slightly down on the Paris Stock Exchange. Indeed, Air Liquide shares lost 0.31% of their value and ended the session at €149.18.
During this session, 628,477 shares of this company, or 0.13% of its capitalization, were traded on the market.
It should also be noted that over the last 7 days, the stock has gained 0.66% and that over one year, its upward progression has been 17%, while the CAC 40 has only gained 32.61% over the same period.