Honeywell Adds Capacity in North American Chemicals Sector

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Researched by Industrial Info Resources (Sugar Land, Texas)--Honeywell International's (NYSE:HON) (Morris Township, New Jersey) chemicals division is broadening its production throughout North America. Honeywell is currently performing capital and maintenance projects at many of its North American plants. Work includes expansions, line and unit additions and revamps, all of which will increase production capacity.

One of the largest projects Honeywell is considering is the plant-wide expansion of its plant in Hopewell, Virginia. The project is in the very early stages of development and planning and is expected to cost approximately $300 million. Expansion of the plant, which manufactures caprolactum and ammonia, is hoped to kick off construction by the end this year.

At Honeywell's plant in Metropolis, Illinois, the company is considering two large capital projects. One is a new unit to produce high-purity lithium hexafluorophosphate (LiPF6) for use in the high-quality lithium ion (Li-ion) batteries needed for electric vehicles. This $54 million project is currently awaiting permit approval, with hopes of starting civil construction in July of this year. The other large expenditure at this plant is tailing ponds remediation. The $10 million project is still in a very early phase, but to comply environmental regulations, Honeywell must remediate four ponds filled with calcium chloride sludge and traces of radioactive material.

For its plant in Baton Rouge, Louisiana, Honeywell is waiting to receive capital approval for line addition to produce a trans-1,3,3 tetrafluoropropene, commonly known as HFO-1234ze propellant/blowing agent. This project, which is being engineered by The Shaw Group (NYSE:SHAW) (Baton Rouge, Louisiana) is expected to kick off civil construction in the first quarter of 2012, with completion planned by the fourth quarter of 2013.

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