UOP LLC, a wholly-owned subsidiary of Honeywell International Inc. (HON), has been selected by Great Orient Chemical Pte. Ltd. to provide technology for a new petrochemicals complex in China.
Great Orient is a joint venture between Indonesian Salim Group and Korean ISU Chemicals, which aims to expand the detergent business in China.
With the help of the technology, Great Orient will produce an important ingredient for biodegradable household laundry detergents.
At its upcoming complex, Great Orient expects to produce up to 100,000 metric tons of linear alkylbenzene (LAB) per year. Honeywell UOP’s LAB technology is applied for producing more than 85% of the world’s detergents.
UOP technology supports LAB production by offering a full suite of technologies and catalysts. Moreover, the company’s detergent technologies provide maximum yield at minimum production cost.
Earlier, Honeywell had received its fifth major energy-conservation contract from the U.S. General Services Administration (GSA) at the White Oak campus for $213 million.
As per the deal, Honeywell will aid in the ongoing development of utilities and energy infrastructure facilities of the Food and Drug Administration (FDA) headquarters, the White Oak Federal Research Center in Silver Spring, Maryland.
Honeywell’s attractive collection of businesses has the potential to earn consistent and above-average returns. The company’s focus on working capital management, free cash flow generation and balance sheet strength remain positive attributes in the current weak environment.
Honeywell is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products and specialty chemicals. The primary competitors include Johnson Controls Inc (JCI) and United Technologies Corporation (UTX).
We currently maintain our Neutral rating on Honeywell for the long term, with a Zacks #3 Rank (short-term Hold recommendation) over the next one to three months.
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