UOP LLC, a subsidiary of
Honeywell International Inc.
), recently procured a contract from Ningbo Fortune Petrochemical
Co. Ltd., a Chinese petrochemical producer, to deploy C3 Oleflex
process technology to convert propane to propylene. This
agreement is the 18th license deal for UOP's Oleflex technology
since the beginning of 2011.
Ningbo Fortune is a subsidiary of Oriental Energy Co Ltd,
which is involved in the international trade, domestic wholesale
and terminal operation of importing liquefied petroleum gas in
China. Oriental Energy has invested in Zhangjiagang Yangzi River
Petrochemical Co Ltd., which licensed C3 Oleflex technology for a
separate project at Zhangjiagang City, Jiangsu Province,
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. Ningbo Fortune is
expected to begin production at its facility in Ningbo City in
2016 with a licensed capacity of 600,000 metric tons of propylene
annually. Additionally, Honeywell's UOP will also provide
equipments training, technological services, catalysts,
adsorbents and equipment at the Ningbo Fortune facility.
The technology from Honeywell is well suited to meet the rising
demand for propylene in China. UOP has already licensed Oleflex
process technology to 12 Chinese propylene producers. As the
demand for propylene increases, producers are on the look-out for
ways to maximize product yield and reduce production costs.
Honeywell's UOP C3 Oleflex process technology perfectly fits the
bill as it reduces costs, generates high returns on investment
and has the smallest environmental footprint, making it the
preferred choice for manufacturers.
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.
Honeywell currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth a look now include
Hutchison Whampoa Ltd
), each carrying a Zacks Rank #2 (Buy).
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