UOP LLC, a subsidiary of Honeywell International Inc (HON), recently announced that China has commissioned the first of 14 planned propylene production units using its proprietary technology to help meet the global demand for key petrochemical.
The UOP C3 Oleflex process technology is a propane dehydrogenation (PDH) process that converts propane to propylene. Propylene is widely used in the production of packaging and other similar types of material like nylon. China’s propylene consumption accounts for more than 15% of global demand and is expected to grow at about 5% to 6 % annually. Zhejiang Satellite Petrochemical is the first Chinese producer to start the production of propylene using UOP C3 Oleflex technology. It is expected to produce 450,000 metric tons (MTA) of propylene annually at its facility in China.
The demand for propylene is expected to rise manifold in China. The technology from Honeywell is well suited to meet this rising demand. As the demand for petrochemicals is increasing, producers are on the look out for ways to maximize product yield and reduce production costs. Honeywell’s’ UOP C3 Oleflex process technology is a likely solution to this, as it reduces costs to yield high returns on investment and maximizes operational flexibility. This new technology further helps bridge the supply and demand gap for the key plastic building block in China.
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.
Honeywell currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include Federal Signal Corp (FSS) carrying a Zacks Rank #1 (Strong Buy), and Carlisle Companies Incorporated (CSL) and EnPro Industries, Inc. (NPO), both carrying a Zacks Rank #2 (Buy).
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