UOP LLC, a subsidiary of Honeywell International Inc (HON - Free Report) , and TPC Group Inc - a leading producer of value-added products, recently inked an agreement for licensing TPC Group's advanced process OXO-D technology to produce on-purpose butadiene. The butadiene is one of the key ingredients for manufacturing synthetic rubber.
Leveraging UOP's expertise, the two companies will jointly enhance OXO-D technology, which is used to convert butane to butadiene for the production of synthetic rubber used in tire and other applications.
The OXO-D technology is cost effective, competitive and commercially proven for the global production of butadiene. This technology is well suited to address the growing supply shortage due to changes in petrochemical production processes, of which butadiene is a byproduct. Together, both the companies aim to modernize the on-purpose butadiene industry with the patented technology.
This agreement is mutually beneficial for both the companies. TPC Group is a leader in production of butane and finished butadiene in North America while Honeywell’s UOP possesses expertise in developing and licensing process technology for the refining and petrochemical industries. Together, both the companies continue to capitalize on the supply of products that are critically in short supply for a variety of end markets like tires, nylons and plastics.
Honeywell is a global diversified technology and manufacturing company with a wide range of products and services. These include 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 as well as 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 CLARCOR Inc (CLC - Free Report) , Icahn Enterprises, L.P. and Noble Group Limited , each carrying a Zacks Rank #1 (Strong Buy)