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UOP LLC, a subsidiary of Honeywell International Inc. (HON - Analyst Report), recently procured a contract from Ningbo Fortune Petrochemical Co. Ltd., a Chinese petrochemical producer, to deploy C3 Oleflex process technology to convert propane to propylene. This agreement is the 18th license deal for UOP's Oleflex technology since the beginning of 2011.

Ningbo Fortune is a subsidiary of Oriental Energy Co Ltd, which is involved in the international trade, domestic wholesale and terminal operation of importing liquefied petroleum gas in China. Oriental Energy has invested in Zhangjiagang Yangzi River Petrochemical Co Ltd., which licensed C3 Oleflex technology for a separate project at Zhangjiagang City, Jiangsu Province, China.

The UOP C3 Oleflex process technology will be used to convert propane to propylene, a substance used in the production of packaging and other similar types of materials. Ningbo Fortune is expected to begin production at its facility in Ningbo City in 2016 with a licensed capacity of 600,000 metric tons of propylene annually. Additionally, Honeywell's UOP will also provide equipments training, technological services, catalysts, adsorbents and equipment at the Ningbo Fortune facility.

The technology from Honeywell is well suited to meet the rising demand for propylene in China. UOP has already licensed Oleflex process technology to 12 Chinese propylene producers. As the demand for propylene increases, producers are on the look-out for ways to maximize product yield and reduce production costs. Honeywell's UOP C3 Oleflex process technology perfectly fits the bill as it reduces costs, generates high returns on investment and has the smallest environmental footprint, making it the 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, 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 include Marubeni Corp. , Hutchison Whampoa Ltd. (HUWHY) and 3M Co. (MMM - Analyst Report), each carrying a Zacks Rank #2 (Buy).

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