An indigenous technology of Honeywell International Inc.’s (HON - Analyst Report) wholly-owned subsidiary UOP LLC was selected by Taiyo Oil Co. Ltd to improve operational flexibility and augment the production of petrochemicals.
Japanese-based energy company Taiyo will utilize UOP Tatoray process technology for its Shikoku Operations in Ehime, Japan. The technology will be used to improve yields of petrochemical products by over 70%, thereby increasing plant flexibility to shift production between petrochemicals or gasoline according to changes in demand. In addition, by increasing mixed xylene production from a given naphtha feedstock, the process significantly reduces the overall cost of production, making it one of the most economical techniques available in the market.
With the UOP Tatoray process technology, the plant is expected to produce 300,000 metric tons of mixed xylene and high-purity benzene each year, starting production in 2014. Honeywell's UOP has been associated with Taiyo for nearly 30 years, providing almost all process units for its Shikoku Operations. Thus, the current tie-up further reinforces their business relationship.
Headquartered in Des Plaines, Ill., UOP is a premier supplier of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries across the globe. It is part of Honeywell's Performance Materials and Technologies strategic business group.
Based in Morris Township, N.J., Honeywell manufactures 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 organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and enables it to earn consistent above-average returns.
Honeywell has a Zacks Rank #2 (Buy). Other players in the industry worth mentioning include United Technologies Corp. (UTX - Analyst Report), ITT Corporation (ITT - Analyst Report) and GKN plc (GKNLY - Snapshot Report), each carrying a Zacks Rank #2 (Buy).