UOP LLC, a subsidiary of
Honeywell International Inc
), recently procured a contract from Fujian Meide Petrochemical
Co. Ltd - a wholly-owned subsidiary of China Packing Group
Company Ltd - to deploy UOP C3 Oleflex process technology for
increased propylene production.
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The UOP C3 Oleflex process technology will be used to convert
propane to propylene, a substance used in the production of
packaging and other similar types of materials. Additionally,
Honeywell's UOP will also provide equipments, staff training and
technical and other services to Fujian Meide's facility.
Honeywell's UOP already has business ties with Fujian Meide.
Earlier, in 2011, it licensed its C3 Oleflex process technology
to Fujian Meide to produce 660,000 metric tons of propylene
annually. The new unit is expected to produce the same annual
quantity starting 2015.
The technology from Honeywell is well suited to meet the rising
demand for propylene across the world. According to market
projections, China accounts for more than 15% of the global
demand. Domestic demand for propylene is further expected to grow
5% to 6% annually. As the demand for propylene increases,
producers are on the look-out for ways to maximize product yield
and reduce production costs. The excellent performance of
Honeywellls' UOP C3 Oleflex process technology is a likely
solution to this as it reduces costs, generates high returns on
investment and maximizes operational flexibility. UOP's combined
Oleflex projects is expected to increase propylene production
globally by more than 5 million metric tons in the next 3 years.
Honeywell is a global diversified technology and manufacturing
company with a wide range of aerospace products and services,
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.
The company faces intense competition from industry bigwigs like
Macquarie Infrastructure Company LLC
). Honeywell currently has a Zacks Rank #3 (Hold). One of its
United Technologies Corp
) carries a Zacks Rank #2 (Buy).