Two Ukrainian neon gas companies confirm shutdown

As the relationship between Russia and Ukraine continues to be tense, the two major Ukrainian neon gas suppliers Ingas and Cryoin have ceased operations.

Ingas is based in Mariupol, which is currently under Russian control. Ingas chief commercial officer Nikolay Avdzhy said in an email that before the Russian attack, Ingas was producing 15,000 to 20,000 cubic meters of neon gas per month for customers in Taiwan, China, South Korea, the United States and Germany, of which about 75% % flows to the chip industry.

Another neon company, Cryoin, based in Odessa, Ukraine, produces about 10,000 to 15,000 cubic meters of neon per month. Cryoin ceased operations to protect the safety of its employees on February 24 when Russia launched the attack, according to Larissa Bondarenko, director of business development at Cryoin.

Bondarenko said the company would not be able to fulfill its 13,000 cubic meters of neon gas orders in March unless the war stopped. With factories closed, the company can survive at least three months, she said. But she warned that if equipment was damaged, it would be a bigger drag on the company's finances, making it harder to restart operations quickly. She also said it was uncertain whether the company would be able to obtain the additional raw materials needed to produce neon gas.

Neon gas prices, which are already under pressure in the wake of the Covid-19 pandemic, have seen a rapid rise recently, having risen 500% since December, Bondarenko said.