This writing is based on another article in the December 19 issue of Chemical and Engineering News. The article is entitled, "Air Products Invests in China".
The basic business of Air Products and Chemicals Is to separate nitrogen and oxygen from air. The Air Products investment in China is to supply another Chinese company with oxygen and nitrogen for converting coal to various oil products. Air Products has also constructed an ammonia plant in China to supply ammonia to another Chinese company for manufacture of light-emitting diodes. The obvious question is why is Air Products pumping its investment money into China. The answer is fairly obvious,. While we have lots of coal in the US and could also convert coal into oil products, the Obama Administration is stuck on renewable energy and makes it almost impossible to justify the conversion of coal to oil.
The ammonia situation is not significantly different. The ammonia generation must go where the light emitting diodes are produced. Why not produce light emitting diodes in the United States? The answer again is an unfavorable business climate, as developed by the Obama Administration. Labor costs are high and there too many regulations, all of which lead to insufficient return on investment. Since the return on investment in China is higher, that's where light emitting diodes will be produced and also where Air Products justifies having an ammonia manufacturing plant.
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