UOP LLC, a subsidiary of
Honeywell International Inc.
), recently announced that it was selected by China's Lijin
Petrochemical Plant Co., Ltd., which will use Honeywell's UOP C4
Oleflex process technology to produce key ingredients for fuels and
synthetic rubber. However, this announcement on May 8 failed to
cheer investors as the stock price dropped 0.17% on Friday, May 9.
Lijin Petrochemical Plant Co., Ltd., a subsidiary of the Lihuayi
Group, is one of the major local petrochemical enterprises in
China. The new unit is expected to begin production at its facility
in China in 2015 with 170,000 metric tons of isobutylene produced
annually. Additionally, Honeywell's UOP will provide the
engineering design, technology licensing, equipment, staff training
and technical service at the China facility.
The UOP C4 Oleflex process technology will be used to produce
isobutylene, a vital ingredient for fuels and synthetic rubber.
Honeywell's UOP Butamer process has been the leading technology in
the industry for decades and increases the feedstock flexibility
for the UOP Oleflex process. In the past three years, this is UOP's
15th Oleflex project in China.
The technology from Honeywell is well suited to meet the rising
demand for fuels and petrochemical in China. As the demand for fuel
increases, producers are on the lookout for ways to maximize
product yield and reduce production costs. Honeywell's UOP C4
Oleflex process technology fits the bill in this respect as the
company has strong fundamentals, proven reliability and long track
record of other UOP C4 dehydrogenation units operating around the
world. All these factors make it a preferred choice for
Honeywell is a global diversified technology and manufacturing
company with a wide range of products and services. These include
control, sensing and security technologies for buildings, homes and
industry, turbochargers, automotive products, specialty chemicals,
electronic and advanced materials, process technology for refining
and petrochemicals as well as energy efficient products and
solutions for homes, business and transportation.
Honeywell currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth a look include
Icahn Enterprises, L.P
Carlisle Companies Inc.
). While Icahn Enterprises sports a Zacks Rank #1 (Strong Buy),
Carlisle Companies and ITT carry a Zacks Rank #2 (Buy).
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