Diversified conglomerate Honeywell International Inc. (HON) recently commenced the full-scale commercial production of a low global-warming-potential (GWP) material at its Baton Rouge facility. The product, known as HFO-1234ze in industry parlance, is primarily utilized as an aerosol propellant, insulating agent and refrigerant.
The low GWP content makes it an ideal choice for global manufacturers of refrigerators and air-conditioners as it is non-ozone-depleting and non-flammable per ASTM E681 and ISO 10156:2010 testing. With the full-scale production of HFO-1234ze, Honeywell expects to reduce its high GWP hydrofluorocarbon annual production by 50% by 2020. The company projects that gradual use of HFO-1234ze in place of hydrofluorocarbon will eliminate over 350 metric tons of CO2 by 2025, which is estimated to be equivalent to 70 million less cars on road for a year.
Honeywell will market this product under its Solstice hydrofluoro-olefin product line that boasts of low GWP that is either equal to or less than CO2, making it an optimal choice for environmentally-safe products. In addition to generating additional revenues for the company, the commencement of the full-scale production of a new material is likely to result in new job creation and overall economic improvement of the region.
Despite modest GDP growth in most regions across the globe in 2015, Honeywell remains focused to deliver high organic growth, strong margin expansion, and double-digit earnings growth in the current year. We are encouraged by management’s continued efforts to drive organic growth while expanding its business in new geographical regions.
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 companies in the industry that are worth mentioning include Compass Diversified Holdings (CODI), Middleby Corp. (MIDD) and Ingersoll-Rand Plc (IR), each having a Zacks Rank #2 (Buy).
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