LP Gas, January 2012
Cylinders are becoming trendy in Europe leaving the heavy duty image behind Worthington says price and value proposition are limiting the use of composite propane tanks Manchesters Lesley Shorter notes that the companys future plans regarding composites are proprietary and we cannot discuss future product or market opportunities without compromising those plans Trendy tanks The cylinder business model in the U S differs from whats found in overseas nations The domestic market ratio is evenly split between exchange and individual consumer ownership In Europe and other countries the great majority of cylinders are exchanged rather than purchased outright The numbers for composite tanks in the U S are insignificant compared to Europe says Filipe Predrosa North American sales director at Amtrol The market share here is about 05 percent the lighter weight vessels account for 20 percent to 30 percent of the exchange cylinders in European circulation Cost is the big issue why Americans purchase just 10000 composite cylinders each year according to Darrel Reifschneider CEO at the Lite Cylinder Co His companys product ranges in price from 85 to 115 Amtrols Predrosa predicts that eventually the American industry will embrace the concept of using tank design to spur exchanges and sales The market will be so competitive that youll have to differentiate yourself from the competition he says Right now its price price price His companys CoMet COM COMPOSITE CYLINDERS posite METal cylinder costs about twice as much as a steel unit As the domestic marketplace gets more competitive you can differentiate on the cylinder because you cant differentiate on the propane Predrosa says Its a commodity product and competition is growing in that exchange market Continued on page 26 www LPGasmagazine com January 2012 LPGas 25
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