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PETROLEUM DIRECTORY: A heavyweight in the air business Air Liquide manufactures and delivers a colorful array of gases Sarah Hurst Petroleum Directory Contributing Writer
The story of Air Liquide began in 1902 when French scientist Georges Claude invented the liquefaction of air. He created the first neon lamp at around the same time. Air Liquide is now the world leader in industrial and medical gases and related services. A multinational corporation, it touched down in Alaska in 1968, when it bought out the old Anchorage Oxygen Co. Air Liquide has grown to four Alaska locations — Anchorage, Fairbanks, Kenai and Homer — and two plants throughout the state, providing employment for 65 Alaskans. It also has 12 distributors in other parts of the state.
“We have been manufacturing nitrogen, oxygen and other gases and packaging them into cylinders since the beginning,” said Brian Benson, one of Air Liquide’s sales and services representatives in Anchorage. “At one time, we manufactured carbon dioxide at this site until it became non-economic, but we still import bulk carbon dioxide and manufacture dry ice on site. We now have an upgraded, FDA-approved, 35-ton-per-day air plant to supply the state with oxygen, nitrogen. Acetylene is manufactured and cylinders serviced in Palmer. We are a certified ‘Made in Alaska’ vendor.”
Acetylene is the hardest product to manufacture because it is a flammable gas and the safety precautions are critical. The product that Air Liquide sells most of, however, is that rather essential item, oxygen. Over 95 percent of products manufactured in Alaska Air Liquide’s network in Alaska allows it to quickly meet clients’ needs. Its stock levels provide for an over 94-percent fill rate on equipment orders, and an even higher level on gas orders. “Clients don’t have to deal with Seattle for competitive pricing on equipment, and we have it in stock,” said Benson. “We manufacture over 95 percent of our products here in the state — profits and taxes paid here, payrolls for Alaskans. We work hard for our customers, and our success is a measure of that work.”
Most of the stock in Air Liquide is owned by French investors, but it is also owned by employees and individuals worldwide, including Americans. The Alaska company, like the others in the United States, is responsible for its own profit and loss. “Our president and CEO for North America, Pierre Dufour, is a French-Canadian, a real friend of northern development; he has visited the fabshops in Anchorage and been extremely supportive of our Alaskan division development.”
Air Liquide’s general manager in Alaska is Bob Cook, who came to the state as a small child, graduated from Lathrop High School in Fairbanks, went to college in Arizona and joined the company in 1975. He went from being an inside salesman to general manager in 1981. Cook has stayed with Air Liquide for most of his career because he likes the way the Alaska operations have always been independent of the larger company, and because there are always new challenges.
“We cover a massive amount of industries and I have a great staff that works for me,” said Cook. “Every year we’ve had increases in revenues and we’ve more than doubled the number of employees in the state.” One of Cook’s biggest achievements has been to continue to get capital investment for the Alaska operations, which has allowed the company to gain efficiencies and keep abreast of the market growth. An example would be the replacement of their air separation plant, which doubled the size of the production facilities, he said.
Benson started out in the construction industry when he was a teenager, and joined Air Liquide as a driver over 20 years ago. “The organization believes in personal development and promotion from within,” he said. In 1989 he moved from inside salesman to manager of the carbon dioxide division. Today, in addition to managing carbon dioxide sales in Alaska, he also manages on-site gas generator developments, food process gases, welding equipment and industrial gas sales. Welding technology key element of company’s business Welding technology is a key element of Air Liquide’s business: it’s the largest supplier of welding gas in Alaska. “Welding technology has gained momentum since the Egyptians learned to forge rough iron together two millennia ago,” said Benson. “The connection with the manufacture of gases probably started when acetylene was discovered in 1836. We manufacture special gases to weld the high tech, high strength metals which metallurgists come up with from time to time. We as an industry have been forced to develop gas chemistry to modify and increase weld strength in these metals. Welding speed, deposition rates and productivity are increased by using the right gas for the right job. It is one of the ways we can bond steel with the ductility and strength needed for modules and pipelines used in the miserably cold regions of the Arctic.”
Besides the cylinders of individual gases, Air Liquide manufactures cylinders of mixed gas in Alaska. By changing the percentage volumes of different gases in the cylinder, different and more efficient welding gases can be produced. The company also uses a patented filling procedure which produces more homogenous mixtures that do not stratify in the cylinder. “We supply virtually everyone in the state who uses gas of any kind, but out of respect to our customers, their business is entirely confidential,” said Benson. Company has own fleet To transport its potentially hazardous products, Air Liquide has its own fleet of 16 rolling stock, consisting of tractor trailers, bulk trailers and box trucks, as well as a dedicated bulk carbon dioxide truck and pickups for “hot-shot” deliveries. “Distribution can be problematic due to the driving conditions in the state, but not unsafe,” said Benson. “We are regulated and controlled by the Department of Transportation’s Code of Federal Regulations Title 49, and keep our equipment at better than minimum conditions. By working with our DOT, we keep our rolling stock safe and have a good relationship. We also work closely with the local fire and police departments, and the Chemical Manufacturers’ Association’s ‘Responsible Care’ program to maintain a safe and secure environment for our employees and neighbors. Nothing is more important than safety and security these days, and it is and has been a condition of employment since I started here.”Centenary celebrated in 2002 In 2002 Air Liquide celebrated its centenary with open houses in Alaska. There were live demonstrations of the newest welding technologies, cutting and welding contests, plant tours and oxygen safety demonstrations put on by the company’s emergency response team. Air Liquide has no engineers on staff in Alaska: the company’s labs are in Countryside, Ill., where it designs gas mixtures and equipment for industry. It has patented innovations for hardware in the electronic, water treatment, on-site gas generation and food industries, as well as welding. Thanks to that work, Air Liquide has introduced specialty welding mixes, food packaging gases, cryogenic food freezing and micro-bulk gas supply to Alaska.
For the future, the sky’s the limit. “We are trying to maintain a dynamic, customer-oriented service organization, and we continue to invest in production capacity and employee development to provide our clientele with superior service,” said Benson. “The business requires continuous improvement to maintain our lead as the state’s leading welding distributor and we will keep introducing new products, services and training to our customers in the Alaska region.”
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