Carrier, the largest manufacturer and distributor of Heating
Ventilating and Air-conditioning (HVAC) solutions and part of
United Technologies Corp.'s (
) UTC Building & Industrial Systems, recently signed an
agreement to form a joint venture with Robert Bosch North America
Corporation. Robert Bosch North America Corporation is a supplier
of technology and services. The financial terms were not
disclosed. The respective brands and revenue channels for each
company will remain independent of one another.
The joint venture aims to develop and manufacture geothermal and
water-source heat pumps for the North American residential and
According to the U.S. Department of Energy, geothermal heat pumps
consume 25%-50% less electricity than conventional heating or
cooling systems and are competitive in comparison to other
products available in the market. They use the constant
below-ground temperature of soil or water to heat and cool
buildings and are suitable for environment-friendly heating and
cooling options available to consumers.
The sales of geothermal heat pumps are expected to nearly triple
by 2020 and this joint venture is an initiative in this endeavor
to enhance Carrier's offerings and services in the growing
he geothermal and water-source heat pumps will be manufactured at
the joint venture's Florida heat pump manufacturing plant in Fort
Based in Hartford, Conn., United Technologies, the parent company
of Carrier, provides high-end technology products and services to
the building systems and aerospace industries worldwide. The
company is a diversified business conglomerate serving various
end markets such as aerospace, defense and commercial
construction. The business diversification allows United
Technologies to remain profitable amid challenging macroeconomic
United Technologies currently has a Zacks Rank #3 (Hold).
Other stocks that look promising and are worth a look now include
Hutchison Whampoa Limited
Tyco International Ltd.
), each having a Zacks Rank #2 (Buy).
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