gradually coming back to normal levels, with a progressive return of non-emergency surgery. Home Healthcare is growing strongly in Latin America across all therapies, and is picking up very gradually in Canada, where the reopening of clinics has allowed home care to be prescribed to new patients. -- Electronics sales were virtually stable at -0.6%: the strong growth of Carrier Gases is masked by weaker sales of Advanced Materials, as the recent price declines have not yet been offset by volume growth.
Europe
Revenue for the Europe region rose by +4.5% to 1,797 million euros. Industrial activities have returned to growth, with higher comparable sales compared to Q1 2019. Large Industries sales were stable compared to Q1 2020. Industrial Merchant activity showed a strong improvement, with sales growth of +3.6% in Q1 2021 compared to a -1.3% decline in Q4 2020. Representing more than a third of Gas & Services sales in Europe, Healthcare activities remained highly mobilized to fight against the pandemic, with sales up by +8.8%.
-- Large Industries sales were stable despite oxygen volumes affected by customer shutdowns in Italy. Volumes to Steel and Chemicals customers rose, notably supported by the recovery of the automotive sector, in Germany in particular. Hydrogen volumes to the Chemicals sector increased and benefited from a favorable comparison basis in Germany. Refining demand remained weak despite a marked sequential improvement in the Benelux and Spain. Sales were up in Eastern Europe, benefiting from strong oxygen demand in Poland, the takeover of a hydrogen unit in Kazakhstan, and an exceptional sale in Russia. -- Industrial Merchant revenue grew by a strong +3.6% compared to a -1.3% decline in Q4 2020. Sales recovered to a higher level than in Q1 2019 for liquid gas and cylinder gas, with a strong sequential pick-up in volumes, especially in Italy, the Iberian Peninsula and Germany. Sales to the Metal Fabrication, Construction, Materials & Energy, Retail & Craftsmen, and Research sectors were up. Activity was still dynamic in Eastern Europe, with strong sales growth in Poland, Russia and Turkey. Pricing remained solid at +1.0%. -- Still very involved in the fight against Covid-19, the Healthcare business grew +8.8%. Growth in medical gas sales remained very strong, despite the already high basis of comparison in Q1 2020. Medical equipment sales were still high, but are gradually normalizing and will be compared to exceptionally high 2020 revenue in the coming quarters. The recovery is accelerating in Home Healthcare, supported in particular by the launch of therapies for diabetes in new regions and the development of sleep apnea treatments in Germany and the Iberian Peninsula. Sales from the Seppic subsidiary also grew strongly, thanks to high demand in Specialty Ingredients for the cosmetics sector and adjuvants for avian and swine vaccines. Europe Air Liquide and BASF have signed a new long-term contract for the supply of oxygen and nitrogen to one of BASF's largest European sites in Germany. Air Liquide will invest around 40 million euros in the construction of a state-of-the-art Air Separation Unit (ASU) at this flagship site for the production of battery materials for mobility. The ASU is planned to be operational in 2023. Air Liquide and Siemens Energy have signed a Memorandum of Understanding to initiate a European ecosystem for electrolysis and hydrogen technology. This Franco-German cooperation is supported by French and German Governments. Large hydrogen projects have already been identified to lay the groundwork for industrial scale electrolyzer systems. A joint application for funding of a large project under the European Union's Green Deal was submitted and both partners jointly participate in the German IPCEI-scheme for hydrogen. Air Liquide and ArcelorMittal have signed a Memorandum of Understanding with the objective of implementing solutions to produce low-carbon steel in Dunkirk. The two companies are joining forces to transform the steel production process through the development of innovative solutions involving low-carbon hydrogen and CO(2) capture technologies. This partnership is the first step towards the creation of a new low-carbon hydrogen and CO(2) capture technologies ecosystem in this major industrial basin.
Asia-Pacific
Sales in the Asia-Pacific region grew strongly by +6.7% to 1,150 million euros, with all business lines recording growth in Q1. China (+12.8%) contributed significantly, and benefited from a favorable comparison basis with Q1 2020 greatly impacted by the health crisis. In the rest of the region, sales increased by +2.4%. Volumes recorded strong momentum in Large Industries, which posted a +8.7% rise in revenue. The strong sales growth in the Industrial Merchant business (+10.6%) was mainly supported by the momentum in China, with sales in the rest of the region just returning to growth. The Electronics business (+1.3%) benefited from the ramp-up of new units but with weaker sales of Advanced Materials and Equipment & Installation.
-- Large Industries sales recorded strong growth of +8.7%, notably supported by strong demand in China (+7.3%), which also benefited from the favorable comparison basis with Q1 2020. Hydrogen volumes showed good momentum, notably for refining in Singapore, as well as for Chemicals in South Korea with the ramp-up of a new production unit and in China. -- Industrial Merchant revenue rose by +10.6%, driven by the positive improvement in all activities in China (+33%) compared to Q1 2020 at the peak of the pandemic. Sales rose sharply in virtually all markets in China, and demand for the Automotive market is picking up across the entire region. Outside China, volumes continued to rise sequentially and sales were back to slight growth, notably driven by emerging economies in Southeast Asia. Pricing impacts at -0.6% were stable excluding the impact from helium prices decline. -- Electronics sales were up by +1.3%, and by +3.7% excluding Equipment & Installation sales. Carrier Gases posted strong growth despite a high basis of comparison, benefiting notably from the ramp-up of several production units in China, Japan and Taiwan. Advanced Materials sales were affected by the high levels of inventories accumulated in 2020 and contract renegotiations including lower prices in anticipation of a rise in volumes. Asia-Pacific Air Liquide Japan and Itochu Corporation have signed a memorandum of understanding to collaborate on the development of hydrogen mobility markets in Japan. Air Liquide has completed the first phase of the construction of its planned 25 MW electrolysis hydrogen plants in the Tainan Technology Industrial Park. These plants will provide ultra-high purity hydrogen to the semiconductor industry as well as serve emerging hydrogen energy applications in Taiwan. This project is in line with the Group's Climate Objectives.
Middle East and Africa
Revenue in the Middle East and Africa totaled 153 million euros, up a strong +17.5% in Q1. Large Industries sales benefited from a rise in demand from customers connected to the pipeline network in Saudi Arabia and a favorable comparison basis due to a customer turnaround in Q1 2020. Industrial Merchant revenue continued to rise supported by a strong activity in India and Egypt. Healthcare is mobilized in the fight against Covid-19, with strong sales growth across the entire region.
Engineering & Construction
The consolidated revenue of Engineering & Construction stood at 76 million euros, up a strong +48.5%, with growth in sales to third-party customers and a favorable basis of comparison due to the closure of the Chinese engineering center during one month in Q1 2020. Total sales, which include internal sales, rose by +19% in Q1 2021.
Order intake stood at 285 million euros, close to 200 million euros more than in 2020, reflecting the efforts of the sales teams and the postponement of some projects due to the health crisis. More than 85% of orders correspond to projects in Asia, including a major contract in Chemicals.
Global Markets & Technologies
The sales of Global Markets & Technologies totaled 155 million euros, up a strong +25.7%. The Biogas business recorded strong momentum, driven by the ramp-up of production plants in the United States and Europe and biomethane sales for transport in France and the United Kingdom. Technology equipment sales rose, notably for membrane-based gas purification in the United States.
Order intake for Group projects and third-party customers totaled 163 million euros, and included major contracts for helium cryogenic refrigerators, and membrane-based gas purification systems, notably for biogas.
Global Markets & Technologies In the context of its renovation and expansion plan, the new Campus Technologies Grenoble, which gathers 1,200 employees, has completed the construction of the first two buildings. Together with the five Innovation Campuses in the Air Liquide group, this site is responsible for designing and manufacturing innovative high-tech solutions for the rising deep tech and energy transition markets. This transformation project is planned to be completed in 2022.
Investment cycle
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
Industrial and financial investment decisions totaled 603 million euros in the 1(st) quarter of 2021. This is excluding the acquisition of 16 air separation units from Sasol in South Africa, pending approval from the antitrust authorities, expected by the end of June.
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04-23-21 0135ET