UOP LLC, a subsidiary of
Honeywell International Inc
), recently secured a contract from Chinese petrochemical producer
Guangdong Peng Zun Energy Development Co., Ltd. for an undisclosed
amount. The deal aims to meet the growing demand for high value
propylene in Southeast Asia by leveraging Honeywell's UOP C3
Oleflex process technology. The contract win seemed to have a
positive effect on share prices, which were marginally up on
Friday, May 23.
The UOP C3 Oleflex process technology is a propane dehydrogenation
(PDH) process that converts propane to propylene. Propylene is
widely used in the production of packaging and other similar types
of materials like nylon. It will be used by a facility in the
Donghai Island Port Chemical Industrial Zone in Zhanjiang, China to
produce 450,000 metric tons of propylene annually starting from
This project is the 16th Oleflex project of Honeywell's UOP since
2011. Additionally, UOP will provide training, technical services,
catalysts, adsorbents, and equipment for the project.
The demand for propylene is expected to rise over threefold by 2020
in China. The technology from Honeywell is well suited to meet this
rising demand. As the demand for petrochemicals is increasing,
producers are on the look out for ways to maximize product yield
and reduce production costs. Honeywell's' UOP C3 Oleflex process
technology is a likely solution to this, as it reduces costs to
yield high returns on investment and maximizes operational
flexibility. The combined Oleflex projects of UOP are expected to
increase propylene production by 8 million metric tons globally in
about three years.
Honeywell is a global diversified technology and manufacturing firm
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, and 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 now include
cahn Enterprises, L.P.
Noble Group Limited
), each carrying a Zacks Rank #1 (Strong Buy).
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