In 2023, Arnox has revived its production and export operations for its portfolio of products, achieving over 14,000 tonnes and 23,000 cubic meters in sales of technical and rare gases. Arnox is successfully rebounding after the challenging climate of 2022, when the enterprise lost access to 50% of its production volumes due to the occupation of Mariupol.

During 2023, Arnox scaled up its oxygen sales to Ukrainian customers fourfold by boosting oxygen production levels. This gas finds extensive application across the metalworking and healthcare sectors. Moreover, optimized operations at partnered metallurgical plants yielded increased volumes of argon gas that is used in metalworking and steelmaking processes. The company has resumed exporting argon to EU countries and the Balkans. Arnox has also invested in new specialized equipment to minimize losses during gas processing.

Early 2023 marked Arnox’s resumption of high-purity xenon and krypton production at new facilities in Odesa Oblast. The company procured specialized containers for exporting rare and inert gases, which in the first quarter allowed it to restore shipments of finished products to global markets spanning Asia, EU member states and the U.S.

“We are restoring sales under challenging conditions,” said Svyatoslav Bogach, Director of the Industrial Gases Department at Arnox. “In 2023, global demand for rare gases noticeably declined. Nevertheless, we persevere in our operations, offering clients a superior quality product while demonstrating Ukrainian business competitiveness even amidst wartime.”

Arnox’s rare gases, xenon and krypton among them, are used to produce semiconductors and microchips. In 2023, global sales of personal devices dropped significantly, reverting to 2017-2018 levels. This compelled major market players to slow down microchip production, and thus adversely impacted the rare gas demand. Many manufacturers launched stock optimization programs. Consequently, purchases of key semiconductor components fell by approximately 30-40% in 2023 versus 2022 levels

Furthermore, China’s 2023 rare gas supply exceeded 2021 volumes by 20-25%. The combination of these factors gave rise to an oversupply situation in the global rare gases market alongside a downturn in indicative pricing across the entire product range.