A-GAS INTERNATIONAL EXPANDS ITS PRESENCE IN AMERICA

LEADING REFRIGERANTS SUPPLIER A-GAS INTERNATIONAL COMPLETES STRATEGIC ACQUISITION OF KEY INDEPENDENT US REFRIGERANTS SUPPLIER AND DISTRIBUTOR, COOLGAS

Bristol-based A-Gas International (or“the Group”), one of the world’s largest independent suppliers of refrigerants, associated environmental services, and speciality gases and chemicals, has completed the acquisition of Houston, Texas based Coolgas Inc. (“Coolgas”), a leading independent supplier and distributor of refrigerants to the US market. The terms of the transaction were not disclosed.

The transaction represents the fifth strategic acquisition completed by A-Gas so far in 2012, and forms part of the Group’s acquisitive growth strategy which is being executed both in the UK and internationally. The enlarged group will have a turnover of c. £130m and 237 employees.

Founded in 1994 by Jesse Combs, Coolgas has grown over the past 18 years to become one of the leading independent distributors of refrigerants in the US. Coolgas’ “refrigerants made simple” philosophy reflects the focus on customer service that has enabled it to grow first to a regional and then to a national player. Coolgas has recently commissioned a new refrigerant storage and packaging facility in Houston and has distribution centres in California, Utah, Arizona, Indiana, Michigan, Maryland and Georgia ensuring that Coolgas is close to its customers wherever they are located.

In recent years Coolgas has also become an EPA registered reclaimer of refrigerants and a project developer for the generation of carbon offsets on the California Climate Action Reserve exchange. These capabilities enable Coolgas to manage the lifecycle of Ozone Depleting Substances (ODS) and substances with high Global Warming Potential (GWP) to safeguard the environment.

The acquisition builds on A-Gas’acquisition of Ohio based refrigerant reclaimer and halocarbon management specialist RemTec International in July 2012. Coolgas provides a strong strategic fit, bringing a strong brand and complementary footprint that will accelerate refrigerants sales growth. Further the reclaim and carbon credits businesses extend A-Gas’ existing operations in the US Environmental Services market which is already well established in the UK and Europe.

The acquisition of Coolgas follows on from the successful acquisitions not only of RemTec International in July 2012 but also of Australian based Technochem in March 2012 and SA Rural in May 2012, and UK based A-Zone Technologies in April 2012.

Commenting on the acquisition:

John Rutley, Executive Chairman and founder of A-Gas International said:
Jesse Combs and his management team have built a great business in the US refrigerant sector and we are delighted to add it to our rapidly expanding presence in this important market. The fit with our recently acquired business, RemTec, is perfect and allows us to offer a full range of products and services to our customers in the world’s largest refrigerant market.

Jon Masters, Regional Managing Director of A-Gas International said:

The acquisition of Coolgas will significantly strengthen our position as the leading independent global supplier of refrigerants at a time when regulatory changes are providing increasing opportunities for reclamation and recycling of used refrigerants using our market leading technology developed in the UK. We look forward to supporting the Coolgas management team and workforce in continuing to provide outstanding service to its customers.

Jesse Combs, CEO of Coolgas said:

I feel honoured that A-Gas saw Coolgas as a strategic fit and entry point into the US refrigerants’ distribution business. Our team of professionals have a customer service mind-set that I believe sets Coolgas apart from the rest of the industry. I have the upmost confidence that the A-Gas team will support and grow upon our "refrigerants made simple" philosophy for many years to come.

About A-Gas International

A-Gas is an international group of companies with headquarters in Bristol, UK. A-Gas is a market leader in the supply of refrigerants within its core territories in the U.K., South Africa, and Australia, and has state of the art storage, blending, packaging and reclamation facilities in Bristol, Cape Town, and Melbourne. The company also has marketing and distribution centres in Singapore, Thailand, China and Mexico. In the US, A-Gas has a Performance Chemicals business located in Doylestown, Pennsylvania; RemTec International, a refrigerant reclaimer and halocarbon management specialist located in Bowling Green, Ohio; and now Coolgas, headquartered in Houston, Texas. For more information, visit www.agas.com

About Coolgas

Coolgas Inc. was started in 1994 as a distributor of refrigerant gases. Through a continual focus on customer service embodied by its “refrigerants made simple” philosophy it has gained customers across the United States and grown to become one of the leading independent distributors of refrigerants. Coolgas supplies a full product range from essential use CFCs through to the most recent HFC blends. Coolgas also supplies in a wide variety of formats from the smallest auto aftermarket disposable cans through to bulk tankers for industrial customers. Coolgas is an EPA approved refrigerant reclaimer. The Coolgas, Inc. headquarters are located 40 miles north of Houston, Texas. For more information visit www.coolgas.com

Dangerous counterfeit R-134a

By Elvis L. Hoffpauir, President and COO MACS Worldwide

Last December, MACS circulated a press release from member company Neutronics Inc’s. Refrigerant Analysis Division, warning about counterfeit R-134a refrigerant contaminated with significant quantities of R-40 (aka methyl chloride or chloromethane). R-40 is extremely toxic, flammable and highly reactive when exposed to aluminum. In some cases R-40 may react with aluminum to form a third, highly unstable compound (trimethylaluminum or TMA) that ignites in contact with air.

This counterfeit R-134a mixed with R-40 and other refrigerants has apparently been purposely designed to mimic pure R-134a at a substantially reduced cost, the likely motivation of the counterfeiters. Current refrigerant identifiers, certified to SAE J1771, are not designed to directly identify R-40.

Prior to issuing the warning, Neutronics had been engaged by the oceangoing shipping industry to assist with an R-134a refrigerant contamination problem involving R-40 that resulted in three deaths in three separate incidents. Since that time Neutronics has been working with the Army, which positively identified R-134a contaminated with R-40 in Army depot supplies. Ground combat and tactical vehicles serviced in Afghanistan and Iraq have been affected, and while the Army does not currently know the depth of contamination, it suspects that vehicles and reclaimed supplies may be contaminated.

At an April 25 meeting of Society of Engineers Interior Climate Control Standards Committee, Peter Coll, MACS director and vice president of Neutronics Refrigerant Analysis, provided field test data from 30 samples of recovered refrigerant from both vehicle and commercial applications. R-40 contamination levels of the samples ranged from less than one percent to 10.1 percent. All of the samples tested also contained other refrigerants including hydrocarbons, R-22 and R-12.

Army representatives asked that the SAE Committee form a working group to develop procedures to identify and isolate contaminated vehicles and equipment, as well as ways to safely service vehicles to return them to mission-ready status.

It should be noted that these contaminated refrigerant systems can pose a major safety issue to those working on them. Currently the industry is working on, but has not determined, the best service procedures to be used. Contaminated systems can damage recovery and recycling equipment, and can result in the requirement to replace all vehicle refrigerant circuit components.

At an April 24 meeting on R-40 in Australia organized by Michael Bennett, general manager of Refrigerant Reclaim Australia, industry representatives discussed the discovery of the counterfeit refrigerant in newly manufactured equipment imported from China. Very high levels of corrosion were said to be present in these systems, and it is thought that rapid corrosion takes place once a contaminated system is installed and operated. Like the SAE and others, this group is working to gain a better understanding of the potential extent of the contamination in order to develop an appropriate plan to manage the threat.

Ron Henselmans, vice chairman of Mobile A/C Partners Europe and editor-in-chief at “Automotive A/C Reporter,” first reported R-40 contamination found in Europe in his March, 2011 issue.
In December, 2011 R-40 contamination had not yet been discovered in North America, but in April 2012 lab tests confirmed the presence of R-40 in a number of containers of recovered refrigerant in the U.S. With the confirmation from the military that infected vehicles have invaded our shores, containment actions are of paramount importance. This problem has been seen in many parts of the world having much smaller mobile A/C fleets, so there is the potential for the same problem in the North American market.

While there is no reason to believe that this contamination is currently widespread in this market, its existence serves as one more reason service shops should remain vigilant and purchase their refrigerant from authorized distributors of their chosen refrigerant manufacturer.

The Mobile Air Conditioning Society’s blog has been honored as the best business to business blog in the Automotive Aftermarket by the Automotive Communications Awards and the Car Care Council Women’s Board!

When having your mobile A/C system professionally serviced, insist on proper repair procedures and quality replacement parts. Insist on recovery and recycling so that refrigerant can be reused and not released into the atmosphere.

If you’re a service professional and not a MACS member yet, you should be, click here for more information.

You can E-mail us at macsworldwide@macsw.org or visit http://bit.ly/cf7az8 to find a Mobile Air Conditioning Society member repair shop in your area. Visit http://bit.ly/9FxwTh to find out more about your car’s mobile A/C and engine cooling system.
The 33rd annual Mobile Air Conditioning Society (MACS) Worldwide Training Conference and Trade Show, Be the Best of the Best will take place February 7-9, 2013 at the Caribe Royale, Orlando, FL.

RemTec International: Full Service Halon, Refrigerant & Clean Agent Specialist

RemTec Launches New Website!

Check out RemTec's new website! We have updated the look and and usability for the convenience of our customers and future customers. Thanks for visiting!
www.remtec.net

Halt on gas import

Samisoni Nabilivalu
Friday, December 23, 2011

THE Department of Environment has revealed that a batch of Refrigerant 134A (R134A) sold locally is actually not 100 per-cent R134A.

The imported refrigerant is used in the car air conditioning systems and commercial and domestic refrigeration.

According to the packaging, the cylinder contains R134A but tests conducted by Seru Ramakita, an Ozone Depleting Substances Inspector with Department of Environment, have proven otherwise.

Mr Ramakita made the discovery by accident earlier this year when demonstrating the use of a refrigerant identifier to customs officers at a workshop in Lautoka.

"The R134A I used for the demonstration was not 100 per cent," he said.

"It was cross contaminated with chlorofluorocarbon and hydro chlorofluorocarbons.

"I kept the discovery to myself because it was a big issue.

"I needed more evidence before we could make any moves and I was hoping one of the companies would bring it up as well."

Lincoln Refrigeration Limited director Praveen Singh was the first to approach Mr Ramakita after the processors for some of their fridges kept burning out.

Mr Singh said he suspected the R134A was inferior and Mr Ramakita confirmed his suspicions after he tested the gas.

"We also supply gas and we've never had this problem before.

"We had a shortage of gas, so we bought the R134A from another supplier," Mr Singh said.

Mr Ramakita confirmed all importers, wholesalers, and retailers of the product had been instructed to halt imports and remove the refrigerant from their shelves as investigations continue.

He said many businesses would have suffered unnecessarily if the product had continued to be used.

Mr Ramakita would not identify the manufacturer or local supplier of the product.

Dangerous R-134a Contamination Found Worldwide

December 21, 2011

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By aftermarketNews staff

EXTON, Pa. – Neutronics, a provider of gas analysis and gas handling technologies, yesterday issued a warning distributed by the Mobile Air Conditioning Society, advising that all industries using R-134a refrigerant immediately test all cylinders thought to be virgin R-134a (including new 30 pound cylinders) due to reports of widespread contamination.

Several months ago, Neutronics' Refrigerant Analysis Division was engaged by the ocean-going shipping industry to assist with a R-134a refrigerant contamination problem that reportedly resulted in several deaths and a significant interruption to ocean-going transport. During the course of this activity, Neutronics reports that it was discovered that this dangerous refrigerant contamination problem was not isolated to a single industry but had potentially penetrated the R-134a refrigerant supply for applications in many global markets, including automotive.

Much of the contaminated R-134a refrigerant has been shown to contain significant quantities of R-40 (aka Methyl Chloride or Chloromethane). R-40 is extremely toxic, flammable and highly reactive when exposed to aluminum in that it forms a third, highly volatile compound. Neutronics points out that it is critical to note the safety concerns with R-40. It is a harmful and dangerous material that is not suited for use in R-134a refrigeration air conditioning systems. Most, if not all of the contaminated R-134a has been found in counterfeit labeled "virgin" R-134a cylinders. In one instance, Neutronics says it was reported that "thousands" of 30 lb. R-134a refrigerant cylinders have been found to be counterfeits of name-brand product. Other suspect virgin R-134a containers have also been found to contain large quantities of R-22 and R-12 refrigerants.

Neutronics says it has evaluated the performance of both current and legacy refrigerant identifiers to determine their suitability for use in testing cylinders with the suspect R-40 material. To date, all reported cases of "virgin" cylinder contamination have included at least 30 percent to -40 percent R-40 in the cylinder.

No current or previous Neutronics R-134a identifier is/was designed for detection of R40 as a direct contaminant. Not all Neutronics refrigerant identifiers are suitable for safely detecting the presence of R-40 in R-134a (e.g. the "Mini ID R-134a" identifier is not suitable for R-40 detection).

A new reference chart published by Neutronics Refrigerant Analysis is now available on the Neutronics website that details the various Neutronics Identifiers currently in the field and how they should react when exposed to R-40 refrigerant. Interested parties should visit www.refrigerantid.com for more information. This information will be readily available on the home page.

As refrigerant identification equipment is widely used in the automotive service industry, Neutronics has determined that its "DX" model automotive refrigerant identifier that meets SAE J1771 requirements can be used for testing "virgin" R134a cylinders to determine the possible presence of the R-40 contaminant.

Neutronics Vice President Peter Coll commented, "As far as R-134a contaminants are concerned, R-40 is about as bad as it can get. Neutronics Refrigerant Analysis will continue to work closely with SAE, AHR and all other pertinent organizations to help mitigate this very troublesome development."

For additional information, contact Neutronics toll-free at 800-378-2287.