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Honeywell International Inc.’s (HON - Analyst Report), group company, UOP LLC, is all set to expand its production facility in Mobile, Ala., to produce adsorbents and catalysts. The company will be investing about $20 million for this expansion.
The facility for expansion produces IONSIV™ Ion Exchange adsorbents, used for the removal of radioactive material from liquids. Honeywell's UOP IONSIV™ Ion Exchange adsorbents are being used in Japan, following the 2011 nuclear disaster. With the facility expansion, the company will be able to produce new adsorbents and catalysts for petrochemical producers and refiners.
Catalysts for increasing petrochemical production with low energy consumption and green house emission are also produced at this plant. By fourth-quarter 2012, the expansion of this facility is scheduled to be completed.
For further expansion, the company emphasizes growth factors, such as investments in new products, technology demarcation, expansion in the emerging markets along with initiatives in key processes. Honeywell’s short-cycle businesses as well as its commercial aerospace spares and residential and commercial retrofit businesses are performing impressively and are expected to support the company’s future growth outlook.
However, any change in the U.S. government’s defense and aerospace funding could adversely impact sales of Aerospace’s defense and space-related products and services.
Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. The major competitors of Honeywell are BorgWarner Inc. (BWA - Analyst Report), United Technologies Corp. (UTX - Analyst Report) and Johnson Controls Inc. (JCI - Analyst Report).
We maintain an Outperform rating on Honeywell, with a Zacks #1 Rank (Strong-Buy recommendation).
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