UOP LLC, a subsidiary of Honeywell International IncHON , recently announced that China's Better Clean Energy - a subsidiary of Better Holdings Group, has licensed its Advanced Methanol-to-Olefins (MTO) process to convert methanol into petrochemicals. With production expected to commence in 2016, the process will be used to produce 300,000 metric tons of ethylene and propylene per year at its new facility in the Shandong province in Eastern China.
Honeywell's UOP will also provide engineering, training, technical service and specialty equipment to Better Clean Energy. The contract is Honeywell UOP's fifth licensing win for its MTO process technology in China. This new MTO process is a cost-effective way to convert low-cost coal and natural gas into the chemicals needed to make plastics while significantly increasing yields and feedstock efficiency.
With rapidly growing demand for plastics, producers are on the lookout for ways to maximize product yield and reduce production costs. Honeywell's UOP MTO process technology is a likely solution to this, as it enables high returns on investment and maximizes operational flexibility.
Honeywell is a global diversified technology and manufacturing company with a wide range of products and services. These include 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 as well as 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 ITT Corporation ITT carrying a Zacks Rank #1 (Strong Buy), and Carlisle Companies Incorporated CSL and Barloworld Ltd. BRRAY , both carrying a Zacks Rank #2 ( Buy).
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