News & Events
Temecula, CA, January 8, 2020 - Nikkiso Cryogenic Industries’ Clean Energy and Industrial Gases Group (“Group”), a subsidiary of Nikkiso Co., Ltd (Japan), closed the acquisition of the Alternative Fuels Division from GP Strategies Corporation (Columbia, Maryland) for an undisclosed amount. The GP Strategies’ Alternative Fuels Division (“AFD”) is a recognized leader focused on the design, fabrication and maintenance of Liquefied Natural Gas (LNG), Liquefied to Compressed Natural Gas (LCNG), Compressed Natural Gas (CNG) and Hydrogen (H2) facilities.
AFD will operate as part of the Group’s Integrated Cryogenic Solutions unit (“Solutions”), and will be renamed ICS. The Solutions unit is one of five functional business units of the Group and operates independently from the Group’s product companies. Solutions provides innovative specialty engineering, centralized project management, procurement, manufacturing and maintenance, focusing on supplying complete solutions.
“We are excited for AFD to join our Nikkiso family. AFD will broaden our offering of complete solutions. We now have an individual functional unit that can provide a solution to the customer in addition to the units that deliver products. This acquisition exemplifies our passion to provide, efficient, performance based products and service,” according to Peter Wagner, CEO of Cryogenic Industries and President of the Group.
Mike Mackey, who will remain with ICS as a Senior Vice President said “The opportunity is exciting and we look forward to being part of Nikkiso. We will meet our customers demand for the best quality, reliability, and return on their investment.”
The acquisition was effective January 1, 2020.
For more details on the acquisition or Nikkiso and its products, click below:
Handling Cold vs. Saturated LNG
Since 1941, when the first pilot LNG liquefaction plant was set up in Cleveland, US, the LNG industry has amassed a huge body of experience that has enabled the near perfect public safety record that it has earned. Today, the global LNG supply capacity has grown to more than 240 million tpy, with over 430 LNG carriers in operation, with a projected growth to approximately 350 million tpy by 2020.
In those early days of the industry, equipment was not available for handling LNG, so a new special equipment industry was born. These developments largely originated from the experience of a group of scientists and engineers based at California Institute of Technology (Caltech), who were involved with the early US aerospace industry.
The LNG supply chain has been growing ever since with the latest new market segments being the small scale LNG plant and LNG as a transport fuel [Figure 1]. These developments have resulted in the introduction of new technologies and solutions over the traditional large scale LNG approach.
Cryogenic Industries, Inc. (and its subsidiaries, ACD, Cosmodyne and Cryoquip) announce their functional consolidation with Nikkiso Cryo, Inc., to be known as “Nikkiso Cryogenic Industries Group” (the Group).
The Group’s creation involves the strengthening and development of five functional units of the companies. The Cryogenic Pumps unit aligns ACD’s and Nikkiso Cryo’s lines of pumps. The Cryogenic Process Systems unit incorporates turbo expanders along with LNG and Air Separation plants. The Heat Exchanger Systems unit focuses on cryogenic vaporizers, LNG and industrial gas equipment. The Cryogenic Services unit provides service and support through a broad network of global facilities. A newly created Integrated Cryogenic Solutions unit will allow for centralized management of product and project development across channels and in multiple market segments. Through joint research and innovation, the Group will provide increased engineering and systems solutions for market development.
“One key benefit of our new business approach is the capacity to expand our offerings and provide a comprehensive product line for clean energy such as LNG and hydrogen, in addition to our existing line of products for industrial gases. We’re calling this segment our ‘One Clean Energy Group,’” said Peter Wagner, President and CEO of Cryogenic Industries. “We are looking forward to working together with Nikkiso Cryo as Nikkiso Cryogenic Industries Group, with our shared experience, resources and commitment to quality. This will allow us to focus more closely on our customers’ needs, providing individual support, service and solutions.”
The functional consolidation will provide the opportunity for a more expansive look at the customer’s product experience and extend the Group’s global reach across increased markets. The full integration will take place over the next several months.