Honeywell International Inc (HON - Free Report) was selected on Oct 9 to provide Experion Process Knowledge System (PKS) for a new Russian pulp paper mill. This mill is wholly owned by Chinese firm Heilongjiang Xingbang International Resources Investment, but is built and operated by Russian North Star Pulp Industrial Complex LLC.
This will be the first greenfield pulp mill to be constructed in Russia in the last 35 years. The mill will begin work in mid-2015 and is expected have an annual capacity of 230,000 tons of pulp. Honeywell's Experion PKS will be installed in major process areas including wood preparation, pulping and drying, and also in chemical recovery and combined heat and power plant. This new technology will manage all the main processes in the mill and will help in preventing unplanned shutdown.
With the adoption of Honeywell’s Experion PKS, the operators will be able to improve operational flexibility, take informed decisions and resolve the challenges that the mill faces. The advanced automation system by Honeywell is likely to improve the overall productivity of the plant and meet the growing demand of paper products in China including construction material, packaging and other products.
The consumption of paper-based goods in China is expected to increase 10% annually and is expected to reach 115 million tons in 2015. The new pulp mill project will foster better business relationship between Russia's Chita region and the neighboring Heilonhjiang province of China.
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 (Buy). Other stocks that look promising and are worth a look now are Federal Signal Corp. (FSS - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and LSB Industries Inc. and ITT Corp. (ITT - Free Report) , both carrying a Zacks Rank #2 (Buy).