UOP LLC, a subsidiary of
Honeywell International Inc.
), recently won a contract from Ascend Performance Materials
Operations LLC, a global leader in the production of Nylon 6, for
an undisclosed amount to provide C3 Oleflex process technology
for one of its propylene production facility located on the U.S.
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The UOP C3 Oleflex process technology is a propane
dehydrogenation (PDH) process, which will be used by Ascend to
convert propane to propylene. Propylene is used in the production
of packaging and other similar types of materials like nylon.
Additionally, Honeywell's UOP will also provide equipments as
well as technical and other services to the U.S. Gulf Coast
facility. The Ascend project is the 14th Oleflex project of
Honeywell's UOP since 2011 and is expected to produce more than 1
million metric tons of propylene annually, beginning 2015.
The technology from Honeywell is well suited to meet the rising
demand for propylene across the world. As the demand for
petrochemicals is increasing, producers are on the look-out for
ways to maximize product yield and reduce production costs. The
excellent performance of Honeywells' UOP C3 Oleflex process
technology is a likely solution to this, as it reduces costs,
generates high returns on investment and maximizes operational
flexibility. The global demand of propylene is expected to
increase 4%-5% annually. The combined Oleflex projects of UOP are
expected to increase propylene production by 7 million metric
tons globally in the coming three 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.
Honeywell currently has a Zacks Rank #2 (Buy). Other stocks that
look promising in the industry and are worth a look now are
Compass Diversified Holdings
Macquarie Infrastructure Company LLC, Inc
), each carrying a Zacks Rank #2 (Buy).