Honeywell International Inc. (HON - Free Report) recently announced that its unit Honeywell UOP's C3 Oleflex propane dehydrogenation (PDH) technology is being used by Zhejiang Satellite Petrochemical Co., Ltd. for the production of 450,000 metric tons of polymer-grade propylene per year at its new petrochemicals facility in China.
This will enable Zhejiang Satellite to cater to the increasing requirement of propylene in China, a major component for the production of plastic. Notably, this marks the company’s second delivery of C3 Oleflex unit to Zhejiang Satellite, the first being in 2014.
Honeywell UOP is a division of Honeywell's Performance Materials and Technologies segment, which also comprises Honeywell Process Solutions. The project involved Honeywell UOP to provide technology licenses for the Oleflex process. In addition, the company provided equipment, catalysts and adsorbents as well as services for the facility.
Notably, its C3 Oleflex technology helps in converting propane to propylene, with the help of catalytic dehydrogenation. With recyclable and low-emission features, the company’s platinum-alumina-based catalyst system ensures minimization of harmful effect on the environment.
Developed to reduce the manufacturer’s cost of production, the technology also helps in boosting return on investment. In fact, apart from improving on-stream reliability, C3 Oleflex technology’s independent reactor and regeneration sections will allow Zhejiang Satellite to boost operational flexibility.
Honeywell believes that strength in the process solutions business coupled with strong demand for equipment, absorbents and refining catalysts is likely to aid the Performance Materials and Technology segment’s revenues. Also, solid demand for its warehouse automation, sensing and IoT businesses will boost revenues of the Safety and Productivity Solutions segment. Moreover, strong demand for commercial fire and security products is expected to drive the Building Technologies segment.
Over the past six months, Honeywell’s shares have gained 10.5% against the industry’s decline of 0.5%.
Despite these positives, softness in the company’s productivity product business, thanks to inventory destocking, fewer large project rollouts in the mobility space and lower channel sell-through, remains a concern.
Zacks Rank & Stocks to Consider
Honeywell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are Federal Signal Corporation (FSS - Free Report) , Carlisle Companies Incorporated (CSL - Free Report) and Danaher Corporation (DHR - Free Report) . While Federal Signal sports a Zacks Rank #1 (Strong Buy), Carlisle and Danaher carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal surpassed earnings estimates in each of the preceding four quarters, the average surprise being 16.48%.
Carlisle outpaced earnings estimates thrice in the preceding four quarters, the average surprise being 17.16%.
Danaher outpaced earnings estimates in each of the preceding four quarters, the average surprise being 3.25%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>