To support critical infrastructure improvement at the industrial facility with an aim to save energy, Honeywell International Inc. (HON - Analyst Report) and the U.S. army recently announced a $61 million infrastructure improvement project at the Rock Island Arsenal Joint Manufacturing Technology Center (JMTC). Honeywell and the U.S. army expect to complete the upgrades by the first half of 2017. The project is part of the technology center upgrades launched by the army through a 20-year energy savings contract with Honeywell.
JMTC manufactures metal parts and systems for the Department of Defense, and is part of the Rock Island Arsenal Garrison - the largest government Arsenal in the U.S.
As part of the project, Honeywell will install high-efficiency heating ventilation and air conditioning (HVAC) systems including on-premise natural-gas heating that will allow the facility to disconnect from the Garrison's central coal-fired steam plant. Another major upgrade is new plating and paint systems for the technology center. This project enables the center to improve the infrastructure and operate efficiently while supporting mission critical features.
This project aims to cut energy usage by approximately 35% and generate approximately $5.3 million in annual energy and operational savings. This project is likely to save nearly 5.5 million kilowatt-hours of electricity annually. Additionally, it is expected to deliver environmental benefits by transitioning to natural-gas heating, which in turn would reduce the annual coal use at the central plant by approximately 12,000 tons.
This will significantly decrease Garrison's eco-footprint, cutting an estimated 63 million pounds of carbon dioxide annually. JMTC accounts for two-thirds of Garrison's overall energy consumption. In addition to immediate savings, the project will help Garrison meet the requirements of a Presidential Executive Order that calls for federal facilities to reduce energy consumption by 30% by 2015.
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 Carlisle Companies Inc. (CSL - Snapshot Report), Hutchison Whampoa Ltd. and Crane Co. (CR - Snapshot Report), each carrying a Zacks Rank #2 (Buy).