UOP LLC, a subsidiary of Honeywell International Inc (HON), recently announced that China's Wison (Nanjing) Clean Energy Co. Ltd, a subsidiary of the Wison Group, has produced healthy olefin yields by leveraging its licensed Methanol-to-Olefins (MTO.V) technology. This technology enables production of high-value petrochemicals from feedstocks derived from coal or natural gas instead of petroleum.
The MTO process technology is flexible and enables plan operators to address the market demand in an effective manner. The technology is well suited for the petrochemical producers in China, facilitating cheaper coal access for higher yields at reduced operating costs.
The Wison facility has an annual production capacity of 300,000 metric tons of ethylene and propylene annually. Utilizing this MTO technology since Sep 2013, it has produced more than 360 million pounds of light olefins at a plant in Nanjing, China.
Since 2011, UOP has announced four licenses for MTO technology in China. Shandong Yangmei Hengtong Chemicals Co. Ltd, a subsidiary of Shanxi Yangquan Coal Industry (Group) Co. Ltd, will use MTO technology to produce 295,000 metric tons of ethylene and propylene annually once it starts its operations this year. Also, Jiutai Energy (Zhungeer) Co, a subsidiary of Jiutai Energy Group, will use it to produce 600,000 metric tons of ethylene and propylene annually from 2015. Additionally, Jiangsu Sailboat Petrochemical Chemicals, a subsidiary of Shenghong Group is expected to produce 833,000 metric tons of ethylene and propylene annually. We remain encouraged by Honeywell’s continuous efforts to launch new products and technologies and expand its business in geographical regions.
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 Carlisle Companies Incorporated (CSL), ITT Corporation. (ITT) and Noble Group Limited (NOBGY), each carrying a Zacks Rank #2 (Buy).
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