Honeywell International Inc ( HON ) recently announced an agreement with Puerto Rico Aqueduct and Sewer Authority (PRASA) to upgrade its wastewater treatment plants. The project is scheduled to be completed by early 2014.
Initially, the project will start with upgrades worth $16.3 million at PRASA's treatment plants in Barceloneta and Caguas, Puerto Rico and are expected to improve efficiency and, trim down energy costs, saving almost $2.7 million annually.
The treatment plant upgrades are expected to modernize infrastructure and reduce energy consumption at the Barceloneta and the Caguas plant by nearly 50% and 30%, respectively. Serving over 97% of Puerto Rico's businesses, PRASA, the largest wastewater utility in North America, is also expected to reduce electricity consumption by 9.3 million kilowatt-hours annually and also curtail harmful emissions by approximately 6,100 metric tons each year. Honeywell is also assessing five other PRASA sites to cut energy consumption and costs, which could deliver more than $3 million in additional savings annually. The savings from the program will be utilized for the upgrades to modernize PRASA facilities without increasing its budgets.
With the prevailing competitive environment, energy conservation is a primary concern for all companies. The technology from Honeywell is well suited to improve the service quality and ensures greater flexibility at the plant and creates more employment opportunities for the local people in an eco-friendly way. Additionally, Honeywell will improve the efficiency of the sludge removal systems at the facilities with maximum amount of waste captured, which ultimately will lower the disposal costs.
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 Crane Co . ( CR ) and Macquarie Infrastructure Company LLC ( MIC ). Honeywell currently has a Zacks Rank #3 (Hold). One of its competitors, United Technologies Corp ( UTX ) carries a Zacks Rank #2 (Buy).