Honeywell will establish a new manufacturing campus in
Zhangjiagang, China, to support growing demand in Asia for
energy technology and advanced materials produced by its
performance materials and technologies (PMT) business, the
company said on Tuesday.
The initial phase of the investment will include catalyst and
adsorbents production capacity for Honeywell UOP, a PMT
business that is a leading international supplier of catalysts,
adsorbents, equipment and process technology for the petroleum refining, gas
processing, petrochemicals and renewable energy
"PMT continues to experience strong growth in Asia, driven by
new process technologies and materials in demand in China and
other parts of this key region," said Andreas Kramvis, CEO of
Honeywell Performance Materials and Technologies. "This
investment is an additional milestone in expanding PMT's global
footprint and demonstrates our commitment to supporting our
rapid business growth in China and the rest of Asia."
The initial phase of the project will include a production
facility for advanced catalysts for Honeywell UOP's
Oleflex process technology, which is used to produce
propylene. UOP has licensed Oleflex technology to 19
Chinese producers over the past three years, as those producers
work to meet strong demand for propylene and isobutylene at a
time when global propylene supplies have tightened.
Compared with alternative technologies, Honeywell says its
Oleflex technology offers higher yields,
lower production costs and higher investment returns, with the
smallest environmental footprint. UOP has licensed a total of
23 Oleflex units globally since 2011.
The initial phase of the Zhangjiagang project will also include
the production of adsorbents, thereby expanding capacity
for Shanghai UOP, a joint venture of UOP and Shanghai Huayi
Group founded in 1988. Adsorbents are materials used in
applications ranging from refining and petrochemical production to natural
"UOP has a long history of supporting China with advanced
process technologies, materials and services for refining and petrochemical production," said
Rajeev Gautam, CEO of Honeywell's UOP, noting that UOP was one
of only 10 businesses that US President Richard Nixon
recommended to China in 1972 to drive bilateral exchange to
accelerate China's modernization development.
"This new site will enable us to meet current demand for a key
catalyst and adsorbent products and allow for future expansion to meet growing demand,"
The more than 120-acre site is PMT's first wholly-owned
manufacturing campus in China. It is located in the
industrial park in Zhangjiagang, which is located 85 miles
northwest of Shanghai.