Honeywell International Inc. (HON) announced that UOP LLC, a group company, has been picked by HC Petrochem Co., Ltd. to facilitate technology transfer for expansion of its petrochemicals complex in Daesan, South Korea.
The basic layout design of the plant has commenced and initial production would start in the second half of 2013. HC Petrochem Co., Ltd. plans to increase its output of paraxylene from 380,000 metric tons to 1,180,000 metric tons per annum.
HC Petrochem Co., Ltd. aims to utilize the UOP Parex and the UOP Isomar processes to treble the output of high-purity paraxylene to support the growing and sustainable demand for petrochemicals worldwide.
Honeywell’s attractive collection of businesses has the potential to earn consistently 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.
The company is a global leader in refrigerants, aerosols and foam-insulation blowing agents used to replace ozone-depleting Chlorofluorocarbon and Hydro chlorofluorocarbons. These same products also improve the energy efficiency of homes, appliances and commercial refrigeration systems.
Proactive restructuring initiatives have positioned the company to navigate better than many of its peers, but we have yet to see signs of stabilization in a number of its major end-markets.
At Automation and Control Systems, the largest segment by revenues, industrial customers are delaying both capital and operating spending across a number of businesses, driven by weaker demand.
Honeywell International 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, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation.
We currently have a Neutral recommendation on Honeywell International.
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