Honeywell International Inc. (HON - Analyst Report) is focused on meeting the rising demand for low global warming material used in insulation and aerosols. Through a planned investment of $33 million in its Baton Rouge, La., manufacturing facility, the company will increase the production capabilities of such products. The Baton Rouge facility of Honeywell is a prominent provider of refrigerants in the U.S.
Honeywell will be producing new low-global-warming-potential (GWP) blowing agent and propellant (technical name: HFO-1234ze) on a commercial scale from the upgraded facility. HFO-1234ze production is expected to start in late 2013.
The Baton Rouge facility has been producing beneficial and energy efficient products for its clients for a long time. The investment enables the facility to become a prime provider of next generation technology for meeting low-global-warming aerosol propellants, foam blowing agents and refrigerants. The new products expand Honeywell’s existing portfolio of low-global-warming-potential products, helping the company to mitigate a rising worldwide concern in a cost effective manner while fulfilling all the environmental regulations.
The U.S. Environmental Protection Agency has recognized HFO-1234ze to be used safely and sold in foam and aerosols. The material is being used in Europe and Japan. Europe has a large number of consumers.
Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide. It also provides aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Major competitors of Honeywell are BorgWarner Inc. (BWA - Analyst Report) , United Technologies Corp. (UTX - Analyst Report) and Johnson Controls Inc. (JCI - Analyst Report) .
We maintain a Zacks #1 Rank (short-term Strong Buy recommendation) onHoneywell.