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Diversified technology company Honeywell International Inc. (HON) recently announced that the indigenous technology of its wholly-owned subsidiary UOP LLC was selected to produce petrochemical products in Brunei, a sovereign state in Southeast Asia.

The technology will be utilized by Brunei Hengyi Industries Sdn Bhd, a subsidiary of Zhejiang Hengyi Group Co. -- one of the largest suppliers of textile raw materials in China, to produce aromatics in a cost-effective way by maximizing product yields while reducing production and investment costs. Aromatics are the key ingredients for the production of polymers, plastics, resins and synthetic fibers such as polyester and nylon.

The project is anticipated to be one of the largest aromatics manufacturing facility in the world and is expected to meet the increasing demand of plastics and synthetic fibers in the region. In addition to its UOP technology, Honeywell will also provide the requisite training and technical services along with catalysts, adsorbents, and specialty equipment for the project. Production at the facility is slated to commence from 2015.

Headquartered in Des Plaines, IL, 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 a part of Honeywell's Performance Materials and Technologies strategic business group.

Based in Morris Township, NJ, 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 has the potential to earn consistent above-average returns.

However, Honeywell faces intense competition from industry bigwigs such as Crane Co. (CR), Textron Inc. (TXT - Analyst Report) and 3M Company (MMM - Analyst Report), each carrying a Zacks Rank #2 (Buy). Presently, Honeywell also has a Zacks Rank #2 (Buy).

(We are reissuing this article to correct a mistake. The original article, issued yesterday, April 3, 2013, should no longer be relied upon.)

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