Diversified technology and manufacturing company,
Honeywell International Inc.
), recently won a $37 million contract to build a service power
facility for Airbus' new assembly site in Mobile, Ala. Honeywell
expects to complete the construction of the powerhouse by
mid-2014; in line with the standards certified by LEED
(Leadership in Energy and Environmental Design).
Along with the design and construction of the facility,
Honeywell has also entered into a 10-year service agreement to
provide service and maintenance for the assembly site. Moreover,
to minimize disruptions to Airbus operations, five operators will
provide day-to-day support. Additionally, the company proposes to
hire contractors from the region to build the facility.
The new power management facility will be in charge of
distribution and control of utilities like electricity, water,
heating and cooling to Airbus' Future A320 Aircraft Assembly
line. Additionally, the facility will also provide backup
generation, compressed air and sewage handling. Moreover,
Honeywell will provide a guarantee to optimally maintain and
operate all the systems.
The contract has been awarded to the Aerospace segment of
Honeywell which has a long standing relationship with Airbus. The
Aerospace segment, which contributed 31% to total revenue during
the last reported quarter, offers turbine propulsion engines,
auxiliary power units, electric power systems, engine systems and
accessories, aircraft hardware, avionics systems, aircraft and
obstruction lighting systems, inertial sensor, and landing
systems for aircraft manufacturers, airlines, aircraft operators,
military services, and defense and space contractors.
Honeywell believes that its expertise in designing, building
and maintaining complex, large-scale manufacturing plants will
ensure operational excellence of Airbus' new facility in the long
Honeywell currently holds a Zacks Rank #2 (Buy). Other
companies in the industry worth mentioning include
Compass Diversified Holdings
Hutchison Whampoa Ltd.
), each carrying a Zacks Rank #2 (Buy).
COMPASS DIVERSF (CODI): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
HUTCHINSON WHAM (HUWHY): Get Free Report
ITT CORP (ITT): Free Stock Analysis Report
To read this article on Zacks.com click here.