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UOP Announces Expansion Of Molecular Sieve Plant

Improvements, upgrades to boost capacity by 20 percent and expand product portfolio

DES PLAINES, Ill., Nov. 7, 2006 -- UOP LLC, a Honeywell (NYSE: HON) company, announced today that Shanghai UOP Ltd. (SUOP), a molecular sieve production facility, will expand its capacity and capabilities to meet growing demand in China.

Productivity improvements, as well as upgrades to equipment, are expected to boost capacity at the facility by 20 percent and allow for a broader range of differentiated product offerings.

The facility manufactures molecular sieve adsorbents, which are used to separate molecules by size. They are used in petrochemical production and oil refining, processing of natural gas, industrial gas and air separation, refrigerant drying and other applications. Located in the Minhang Economic and Technical Development Zone in Shanghai, SUOP is the largest manufacturing plant for adsorbents in Asia.

“This expansion will allow SUOP to meet growing demand for molecular sieves in Asia, and specifically China,” said Carol Bibb, senior vice president for UOP’s Catalyst, Adsorbents and Specialties business. She noted that the company is planning additional investments to further expand production in China because of product demand driven by strong growth of industrial activity of the region. In addition to the SUOP facility, UOP supports global demand for molecular sieves with manufacturing facilities in Mobile, Alabama and Reggio Calabria, Italy.

Zeolite molecular sieves are crystalline structures that, on a molecular scale, are like sponges. They have a solid framework, defined by large internal cavities where molecules can be adsorbed. These cavities are interconnected by pore openings through which molecules can pass, and because of their crystalline nature, the pores and cavities are all precisely the same size.

Depending on the size of the openings, they can adsorb molecules readily, slowly, or not at all, thus functioning as molecular sieves -- adsorbing molecules of certain sizes while rejecting larger ones.

The scientists of the Linde Department of Union Carbide (a business unit now merged into UOP) invented synthetic molecular sieves more than 50 years ago. UOP continues to be a pioneer in the adsorbents business by developing cutting edge products and processes to assure our customers high performance and overall value.

UOP offers the broadest range of molecular sieves and alumina adsorbents in the world with production facilities in the United States, Italy, Japan, and China. UOP is the worldwide leader in the continuing development and manufacture of zeolite and alumina adsorbents and their commercial applications. UOP maintains sales offices in 12 countries, as well as at its corporate offices in Des Plaines, Illinois, U.S.

SUOP was founded in 1988 with joint venture partner Shanghai Huayi Group. UOP holds a 70 percent ownership interest in the company.

Shanghai Huayi Group Company is a large-scale enterprise group established by re-organization of assets with the authority of the State Assets Administrative Committee of Shanghai Municipal People’s Government. The company has more than 20 wholly-owned and share-holding branches including Shanghai Tianyuan (Group) Co., Ltd, Shanghai Tyre & Rubber (Group) Co., Ltd, Shanghai Coking & Chemical Corp., Shanghai Wujing Chemical Co., Ltd. Huayi (Group). It also has engineering and research institutes, including two national enterprise technological centers, eight municipal enterprise technological centers. In 2005, Shanghai Hua Yi Group was ranked as 48th largest company among China Top 500 Manufacturing Enterprises.

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 Specialty Materials strategic business group. For more information, go to www.uop.com.

Honeywell International is a $31 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index. For additional information, please visit www.honeywell.com.

This report 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.

Contact:
Peter Dalpe

(973) 455-4908
peter.dalpe@honeywell.com


 

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