UOP LLC, a subsidiary of Honeywell International Inc. (HON), recently announced that its Oleflex process technology was selected by Chinese company Shandong Shouguang Luqing Petrochemical Co. Ltd. for the production of key ingredients for high-octane fuels and synthetic rubber.
The Chinese refinery currently produces diesel, gasoline, liquefied petroleum gas, and polypropylene. A new unit of the company in China is expected to begin production of isobutylene in 2016 with an annual production of 170,000 tons. Honeywell UOP's C4 Oleflex process will be used for the production of isobutylene, which is essential for the production of high-octane fuels and synthetic rubber, to meet the increased local demand. Additionally, UOP will provide engineering design, technology licensing, equipment, staff training and technical service.
The technology from Honeywell is well suited to meet the rising demand for fuels and petrochemicals in China. As the demand for fuel increases, producers are on the lookout for ways to maximize product yield and reduce production costs. Honeywell's UOP C4 Oleflex process technology fits the bill with strong fundamentals, proven reliability and a long track record of other UOP C4 dehydrogenation units operating around the world. All these factors make it a preferred choice for manufacturers.
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. It also produces 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.
Honeywell currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now in the industry include Federal Signal Corp. (FSS), ITT Corporation. (ITT) and Delphi Automotive PLC (DLPH), each having a Zacks Rank #2 (Buy).
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