The Korea Herald

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Air Liquide Korea expects further growth through investment

World’s leading provider of industrial gases focuses on Korea’s semiconductor giants, health care markets

By Korea Herald

Published : July 15, 2013 - 19:51

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Following is the third in a series of articles about promising foreign-invested companies. ― Ed.


DANGJIN, South Chungcheong Province ― Gases such as oxygen, nitrogen, hydrogen and carbon dioxide are not what ordinary consumers think about when making a purchase for automobiles, electronics, health care products, or other consumer goods.

Nonetheless, a reliable supply of high quality industrial gases and services is vital for the production of many consumer goods, as well as for the complex industrial process behind the scenes.

France-based Air Liquide Korea ― the world’s biggest provider of industrial gases ― prides itself in having met the high demands of Korean clients since the opening of its first Korean plant in Gumi, North Gyeongsang Province, in 1996.

“We have the benefit of economies of scale here in Korea and broadly throughout the Asia-Pacific region,” Christopher Clark, president and representative director of Air Liquide Korea told The Korea Herald.

“In the gas and services industry, we are very diverse in terms of both geographic presence and products and services we provide. And our employees are focused every day on improving the technical solutions for our customers.”
A group of foreign students in Korea visits the factory of Air Liquide Korea in Dangjin, South Chungcheong Province, last week. The tour was organized by Invest Korea. (Park Hae-mook/The Korea Herald) A group of foreign students in Korea visits the factory of Air Liquide Korea in Dangjin, South Chungcheong Province, last week. The tour was organized by Invest Korea. (Park Hae-mook/The Korea Herald)

With approximately 190 employees working in different regions in Korea, ALK’s presence and influence in the Korean industry has now grown significantly ― recording more than 435 billion won ($390 million) in sales last year.

Including its flagship plants in Dangjin, South Chungcheong Province and Yeosu, South Jeolla Province, ALK currently operates production sites at 12 different locations throughout Korea.

According to Clark, Air Liquide Group is present in over 80 countries worldwide with some 50,000 employees serving more than 1 million customers. The company’s global total revenue last year stood at over 15.3 billion euros ($20 billion).

Approximately 25 percent of the company’s gas and services revenue last year came from the Asia-Pacific region, and the region’s significance is expected to grow rapidly.

“We supply multiple customers, multiple services to industries through thousands of kilometers of pipelines. So we have to operate locally within the countries,” Clark said.

The company’s Danjin plant was built in 2007 in order to take advantage of the geographical proximity to the region’s major Korean companies, such as Dongbu Steel and Hyundai Mobis.

ALK’s deep involvement in the electronics and semiconductor industry is another reason behind the company’s increasing investments here in Korea, according to Clark.

“We chose Korea because of the importance of Samsung Electronics and other major semiconductor chipmakers here,” Clark explained.

“The bulk of our (clients) are in fact electronics companies, and the semiconductor business is strategically important for the future of ALK.”

A variety of high quality carrier gases, such as high purity nitrogen, hydrogen and argon, is used in the production of semiconductor chips.

In order to meet the demands of Korea’s ever expanding electronics market, ALK last year built a new research and development laboratory at Yonsei University.

“We have some excellent researchers here in Korea who know how to develop and synthesize molecules for production of new materials that are used in very specialized, high-quality electronics applications,” Clark said, emphasizing his company’s potential growth in the Korean semiconductor market.

Currently, Air Liquide Group operates eight R&D centers on three continents with each focused on distinct research areas, such as electronics, welding and health care.

“We file about 300 patents a year on industrial gases,” Clark said, pointing out the value of innovation his company brings to Korea.

Apart from technological innovation and quality services it provides to the customers, ALK has been also praised for world-class work environment safety measures as well as for its efforts to create a sulfur-free environment in Korea.

Taking safety as a core value, ALK has applied rigorous safety performance standards not only to assure a safe and reliable work environment for its employees but also to create an environmentally responsible atmosphere within the company.

In fact, over 60 percent of Air Liquide Group’s R&D budget is earmarked for a variety of environment-related activities, according to the company.

“The way we try to be environmentally efficient will help reduce carbon footprint in Korea,” Clark added.

ALK’s steady growth and investment over the years have made significant contributions to the Korean economy, according to company officials.

“For the short-term, ALK will keep on investing on young Korean people as we continue to expand. And the innovation we provide will help our customers develop better products and become more innovative and efficient in the long run,” Clark added.

Taking advantage of the market diversity, ALK is also increasingly venturing into Korea’s health care market. And over 3,000 patients with lung problems have already benefited from its products in the past two years, according to company officials.

As the France-based company plans for continued expansion in Korea, it is expected to open an advanced materials plant in Hwaseong, Gyeonggi Province and another plant for nitrogen gas supply in Gunsan, North Jeolla Province.

By Kwon Bum-joon (bjkwon@heraldcorp.com)