Definition

TIndustrial gases firms shall be defined as those involved in the manufacture of any of the following gases in the country: oxygen, nitrogen, argon, hydrogen, acetylene, and carbon dioxide. Those with existing capacity but not presently producing, due to cost factors are included. This classification excludes those engaged in retailing of industrial gases and those that produce solely for their own use.

CIGI is currently the only local gas company that can offer a wide array of specialty gases. These include higher-grade industrial gases and special gas mixtures prepared according to the specifications of the customer.

CIGI Quality Control issues certificates of compliance and analysis assuring customers that the technical requirements are fully accomplished.


Overview

A total of 29 firms of various sizes compose the local industrial gases manufacturing industry, 13 of which are located in Luzon, 8 in the Visayas, and another 8 in Mindanao. Based on asset size, three firms are considered large scale, and 26 are small- and medium-scale companies. Of these three big companies, two have set up their plants in Metro Manila and one in Metro Cebu. The small and medium scale companies are spread out nationwide.

Only three of the six locally produced industrial gases are manufactured from materials, which are sourced from other chemical manufacturers.

Presently, only Maria Cristina Chemical Industries Corporation is manufacturing calcium carbide for the production of acetylene. Methanol is sourced from abroad. While local petroleum refineries can adequately 3supply fuel oil (bunker and diesel oils), requirements for carbon dioxide can be readily sourced from sugar centrals like Central Azucarera de Don Pedro and de Tarlac.

As an intermediate input in making major product lines, industrial gases can be vertically integrated with other industries.

However, there is no gas producer in the country that manufactures its own raw materials considering that such raw materials can be sourced from natural resources: air for oxygen, nitrogen and argon production; and water for hydrogen production.

Four of the 29 firms are registered and enjoy investment incentives with the Board of Investments (BOI) ; two as large-scale expanding producers, one as an existing and expanding producer, and the remaining firms as new producers. The new and existing producers are small- and medium-scale firms.