American multinational company, Honeywell International Inc.HON was awarded a five-year contract worth over $200 million by Memphis Light, Gas and Water (MLGW). Honeywell is expected to set up its Elster EnergyAxis AMI (Airline Modifiable Information) advanced metering technology across the entire region covered by MLGW.
Under this project, Honeywell is expected to install around one million electric, gas and water smart meters. This project will include communicative modules that will help facilitate automated meter reading and software solution to manage and analyze data.
This operation should auger well for MLGW, as it is expected to be cost efficient and less time consuming. Collection of metering data will be totally automated, which will increase accuracy, leading to enhanced efficiency in the future.
Honeywell is expected to complete its project by the end of 2020. This project will prove beneficial for the company since it will expand its Energy business at home.
The acquisition of Elster in Dec 2015, has helped Honeywell expand its technological portfolio and customer base. This acquisition has been the biggest purchase to date for the company since 1999.
Honeywell was also awarded another contract earlier this year in Vietnam, to supply gas processing plants and advanced automation systems to produce liquefied petroleum gas across the region.
Honeywell carries a Zacks Rank #3 (Hold). Some companies worth considering include Barloworld Ltd. BRRAY , LSB Industries Inc. LXU and Macquarie Infrastructure Corporation MIC . Each of these stocks carries a Zacks Rank #2 (Buy).
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