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Honeywell's UOP Selected to Provide Technology for Propylene Production in China

Market-leading UOP propylene-production technology will be used to meet the growing demand in China for propylene for films and packaging production


News provided by

Honeywell

Apr 26, 2012, 10:00 ET

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DES PLAINES, Ill., April 26, 2012 /PRNewswire/ -- UOP LLC, a Honeywell (NYSE: HON) company, announced today that it has been selected to provide key technology to produce propylene in China.

Zhangjiagang Yangzi River Petrochemical Co. Ltd will use Honeywell's UOP C3 Oleflex™ process technology to convert propane to propylene, which is used in the production of materials such as films and packaging.

The project is the ninth propylene project Honeywell's UOP has announced since the beginning of 2011, helping meet the growing demand globally.

"UOP's combined Oleflex projects will help increase propylene production by nearly 5 million metric tons globally in the next three years," said Pete Piotrowski, senior vice president and general manager for Process Technology and Equipment at Honeywell's UOP. "This technology has been used extensively in China due to the region's accelerated propylene demand, and we look forward to working with Zhangjiagang Yangzi River to continue to produce this vital petrochemical."

The new unit, expected to start up in 2014, will produce 600,000 metric tons of propylene annually at its facility in Zhangjiagang City, Jiangsu Province, China. Honeywell's UOP will provide the engineering design, technology licensing, catalysts, adsorbents, equipment, staff training and technical service for the project.

The C3 Oleflex process uses catalytic dehydrogenation to convert propane to propylene. Compared with competing PDH processes, Oleflex technology provides the lowest cash cost of production and the highest return on investment, enabled by low operating and capital costs, high propylene yield and reliability, and maximum operating flexibility.

Since the technology was commercialized in 1990, Honeywell's UOP has commissioned nine C3 Oleflex units for on-purpose propylene production, with the 10th unit scheduled to start-up this year in Russia. Since the beginning of 2011, Honeywell's UOP announced eight similar projects in China, Abu Dhabi and North America.

Zhangjiagang Yangzi River Petrochemical Co. Ltd. is a joint venture of Oriental Energy Co., Huachang Chemical Co. and Feixiang Chemical Co., and is headquartered in Zhangjiagang City, Jiangsu Province, China.

UOP LLC, headquartered in Des Plaines, Illinois, USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywell's Performance Materials and Technologies strategic business group. For more information, go to www.uop.com.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE Honeywell

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