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UOP LLC, a subsidiary of Honeywell International Inc. (HON - Analyst Report), recently won a contract from Ascend Performance Materials Operations LLC, a global leader in the production of Nylon 6, for an undisclosed amount to provide C3 Oleflex process technology for one of its propylene production facility located on the U.S. Gulf Coast.

The UOP C3 Oleflex process technology is a propane dehydrogenation (PDH) process, which will be used by Ascend to convert propane to propylene. Propylene is used in the production of packaging and other similar types of materials like nylon. Additionally, Honeywell's UOP will also provide equipments as well as technical and other services to the U.S. Gulf Coast facility. The Ascend project is the 14th Oleflex project of Honeywell’s UOP since 2011 and is expected to produce more than 1 million metric tons of propylene annually, beginning 2015.

The technology from Honeywell is well suited to meet the rising demand for propylene across the world. As the demand for petrochemicals is increasing, producers are on the look-out for ways to maximize product yield and reduce production costs. The excellent performance of Honeywells’ UOP C3 Oleflex process technology is a likely solution to this, as it reduces costs, generates high returns on investment and maximizes operational flexibility. The global demand of propylene is expected to increase 4%-5% annually. The combined Oleflex projects of UOP are expected to increase propylene production by 7 million metric tons globally in the coming three years.

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 #2 (Buy). Other stocks that look promising in the industry and are worth a look now are ITT Corporation (ITT - Analyst Report), Compass Diversified Holdings (CODI - Snapshot Report) and Macquarie Infrastructure Company LLC, Inc (MIC - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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