Kim Denney

Q: Considering the consolidation of the industrial gas production industry, what is your outlook for competition in the future?
Competition will remain strong in the U.S. I don't see the market being exclusively dominated by any particular group of producers or distributors. Parties will continue to recognize new opportunities and take advantage of ever changing market variables.

Q: With the size of the U.S. market for industrial gases and its expected growth, are current production facilities adequate?
There is no doubt that the U.S. will need more production in the future. In fact, there are a few plants already announced and in the process of being built. I firmly believe that there will be more domestic production facilities added as market demand continues to increase.

Q: With the growing interest in hydrogen as a fuel source, are you considering participating as a supplier? Do you see the potential of using hydrogen as a fuel source having an impact on independent distributors?
Air Liquide is looking beyond the current oildominated hydrogen marketplace. We already have significantly increased hydrogen production in the U.S. and abroad, and are at the forefront of innovative technologies and pilot applications using hydrogen as fuel.

As the applications and infrastructure increase for hydrogen fuel, so will the growth of production and need for advanced filling and distribution capabilities and channels.

It may be difficult for independent distributors to see themselves involved in hydrogen, but we believe there will be opportunities to market very small hydrogen packages and/or sources for use as fuel. Imagine running your home air conditioner on hydrogen power, for instance.

As the hydrogen market grows and evolves, I can foresee opportunities for a variety of distribution channels to meet the evolving needs of consumers.

Kim Denney was appointed president of Air Liquide America L.P. in February, 2005. She is responsible for the cylinder gas, equipment and analytical services businesses for Air Liquide in the U.S. Previously, she served as vice president, supply chain, in addition to 10 years of experience in Air Liquide's U.S. operations in local, regional and business unit leadership roles. Prior to joining Air Liquide, she held positions of increasing responsibility with E.I. DuPont, Quantum Chemical Company and the USI Division of National Distillers and Chemicals.

She leads an organization that has more than 2,600 customers, 500 employees and 30 plants. Air Liquide America L.P. and its predecessors have provided gases, safety and laboratory supplies for nearly 70 years in the U.S. marketplace.