Air Water America has announced the acquisition of American Gas Products (AGP), a prominent helium gas supplier throughout the United States. The acquisition was completed on September 28, 2023.

Air Water America is actively building its industrial gas supply business in North America through the acquisition of regional gas distributors and investments in air separation plants. In line with our future business expansion plans, we intend to diversify our gas offerings beyond atmospheric gases (oxygen, nitrogen, argon) to enhance our comprehensive capabilities as an industrial gas manufacturer and supplier.

As part of this business strategy, Air Water America acquired the business of AGP, which has a unique helium supply chain and an extensive customer base. Through established helium offtake agreements with multiple helium well sources in the U.S., AGP guarantees a reliable supply of helium even under tight supply-demand situations. Consequently, AGP holds a significant market share (approximately 22%) in the *1balloon helium gas market in the United States and continues to achieve consistent growth.

AGP will strengthen and expand its helium gas business by reinforcing its supply and sales footprint, including the construction of multiple fill plants. Additionally, AGP will develop a strategy to supply helium to industries with substantial market size, such as the *2healthcare market and the semiconductor industry, which is expected to experience high growth rates in the future. Furthermore, AGP will collaborate with our group company, Nippon Helium Inc., to increase our purchasing power of helium in the global market and build a stable supply system for high-value helium resources.

The helium market is currently facing supply shortages worldwide due to reduced operating rates of helium supplyplants and delays in launching new plants. Meanwhile, the helium market anticipates significant demand growth, primarily in the semiconductor and aerospace industries. with the end of global supply-demand tightness not in the foreseeable future. Despite tightness in supply, AGP has rapidly expanded its market share by not depending on helium procurement from oil and gas majors, but by entering helium procurement agreements with several small gas fields. This strength allows AGP to provide balloon grade helium at competitive prices.

The Air Water Group is actively expanding its overseas industrial gas business in India and North America as part of its growth strategy for 2030. North America, in particular, is the world's largest industrial gas market, approximately five times the size of Japan, with a concentration of various manufacturing industries and cutting-edge technology sectors. It is also a market where new applications for industrial gases are being developed ahead of the rest of the world.