Honeywell has completed the sale of its Friction Materials (FM) business to Federal-Mogul in a cash transaction valued at approximately $155 million. The transaction does not include the Bendix® name or line of products or business in the United States. In addition, joint ventures that operate in Australia, Thailand, and Malaysia will be retained as will Honeywell’s ownership of the non-operating sites in Condé, France and Guangzhou, China.
Honeywell will also realign its Transportation Systems business segment with its Aerospace business segment to better take advantage of the engineering and technology similarities and the shared business models between these two business segments. Under the realigned segment reporting structure, the company will have three business segments: Aerospace, Automation and Control Solutions, and Performance Materials and Technologies.
“The sale of the Friction Materials business is a significant step in our effort to fully align the Honeywell portfolio around Great Positions in Good Industries,” said Honeywell Chairman and CEO Dave Cote. “Honeywell is a global technology leader and our Turbo business is one of our innovation crown jewels. Born out of our Aerospace business, the automotive turbocharger is a miniature jet engine. To leverage shared strengths and synergies, we will merge Transportation Systems, which includes our Turbo Technologies business, with Aerospace. We expect the transition to be seamless with both businesses benefitting from expanded sharing of the technical expertise that enables them to offer differentiated products to customers in their respective markets.”
“Every country recognizes that exports are critical for job development,” Cote explained. “Exports create jobs. It's why you find big countries like Korea, Japan, China, France, Germany – all of them are supporting exports with financing. We do the same thing with the Ex-Im Bank. We need to have this to be competitive as a country.”
Cote continued, “We can't unilaterally disarm and say, for all of their companies, ‘sure, go ahead and provide financing that helps companies export but in the U.S., we're not going to help our companies.’ It puts U.S. workers at a disadvantage. I don't think we ought to put U.S. workers in that kind of a position.”
Honeywell’s UOP green fuels process technology was selected by Petrixo Oil & Gas to produce renewable jet fuel and diesel at a new refinery to be built in Fujairah, United Arab Emirates. This will be the first commercial-scale, renewable jet fuel production facility outside of North America.
Petrixo will use UOP Renewable Jet Fuel process technology to convert approximately 500,000 metric tons per year of renewable feedstocks into renewable jet fuel and renewable diesel, also known as Honeywell Green Jet FuelTM and Honeywell Green DieselTM. The process technology is capable of converting a variety of renewable feedstocks.
Petrixo announced earlier this year that it will invest $800 million to build the new refinery, which will have a design capacity of 1 million tons per year of biofuel products.
Honeywell will help reduce the climate impact of refrigerators and freezers in China under a grant agreement signed on July 8, 2014 between the U.S. Trade and Development Agency (USTDA) and Midea, a leading China-based manufacturer of home appliances.
The project will focus on Honeywell Solstice® Liquid Blowing Agent (LBA), which allows appliance insulation to expand and provides the majority of the resulting foam’s excellent insulating properties. Solstice LBA has a global warming potential of 1, which is 99.9 percent lower than the hydrofluorocarbons (HFCs) it often replaces, and is nonflammable. Honeywell will partner will Midea to further develop the application technology of Solstice LBA for energy-efficient refrigerators in China.
“We are honored to be part of this exciting program, which will help improve the environmental profile of refrigerators sold in China,” said Ken Gayer, vice president and general manager of Honeywell’s Fluorine Products business. “Honeywell is the leader in the development of low-global-warming-potential blowing agents, refrigerants, aerosols and solvents, and we are uniquely positioned to help manufacturers like Midea achieve their energy-efficiency goals.”
Honeywell Process Solutions Safety Manager (pictured above) to be part of the upgrade
Honeywell Process Solutions will supply a new integrated control and safety system for Qatar Fuel Additives Company’s (QAFAC) Mesaieed Industrial City plant, 50 kilometers south of Doha. The upgrade will help the plant reduce operating costs and improve efficiencies as it increases production of methanol and MTBE (methyl tertiary butyl ether), a key gasoline additive that reduces tailpipe emissions.
Honeywell’s integrated control and safety solution, including a new fire and gas system, will improve automation at the plant, increase cyber security, and enhance operator effectiveness. QAFAC will also benefit from ongoing long-term services through Honeywell’s lifecycle support.
QAFAC, a joint venture between state-backed Industries Qatar, OPIC Middle East, LCY and IOL, plans to become one of the top five international producers of methanol and butane derivatives by 2020. It is also planning to commission an $80 million carbon dioxide recovery project this year to capture 500 tons of CO2 a day for re-injection into the production cycle.
Honeywell Chairman and CEO Dave Cote introduced the company’s ambitious new Five-Year Plan (from 2014-2018) with expectations of $46-51 billion in revenue and 18.5-20% operating margins by 2018. In this video, Cote will walk you through the five most important parts of the plan, which include:
A focus on high growth regions (HGR), which are expected to drive 50% of Honeywell’s growth over the next five years
HOS Gold, the next step in the evolution of the Honeywell Operating System, to drive exceptional performance through continuous process improvement
The Honeywell User Experience (HUE), a competitive advantage focused on significantly improving the customer experience through solutions that are easier to use, more valuable and more efficient
An intensified focus on superb software development for more efficient and more robust technology
Effective cash deployment through investment in our businesses, dividend growth, and strategic M&A