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China Commissions First of 14 Planned Propylene Production Units Using Technology from Honeywell's UOP to Help Meet Global Demand for Key Petrochemical

UOP Oleflex™ process technology helping close supply-demand gap for propylene, a key building block for plastics DES PLAINES, Ill., Dec.23, 2014 UOP LLC, a Honeywell (NYSE: HON) company, announced today that China has commissioned the first of 14 planned propylene production units using technology from Honeywell's UOP to help close the global supply and demand gap for the key plastic building block.China's Zhejiang Satellite Petrochemical Co. Ltd became the first Chinese producer to start production of propylene using UOP C 3 Oleflex™ process technology, which efficiently produces propylene from propane. Zhejiang Satellite Petrochemical is currently producing high quality, on-spec product for acrylic acid and derivative production.Traditionally, propylene is a byproduct of making ethylene, another key plastics building block. However, a shift in how ethylene is produced globally has meant less propylene byproduct is being produced, sparking investment in technology to create propylene from propane. Since 2011, UOP has licensed the C 3 Oleflex process to more than a dozen producers to meet rising demand, with a majority of licensed capacity in China."China's propylene consumption accounts for more than 15 percent of worldwide demand and is growing at about 5 to 6 percent per year," said Pete Piotrowski, senior vice president and general manager of UOP's Process Technology and Equipment business. "Oleflex technology has been demonstrated to have the lowest cash cost of production due to its efficiency, providing a significant operating advantage to our licensees, and we look forward to showcasing the commercial success of this technology in China."Zhejiang Satellite Petrochemical Co. Ltd. will produce 450,000 metric tons annually (MTA) of propylene at its facility in Pinghu City in Zhejiang Province, China. Zhejiang Satellite Petrochemical Co. Ltd., formerly known as Zhejiang Julong Petrochemical Co. Ltd. (ZJLPC), produces materials used in various markets, including aviation, automobile production, oil mining, health care and textiles."We were very pleased with the ease of startup of UOP's Oleflex technology," said Mr. Zhang Hongliang at Zhejiang Satellite Petrochemical. "We chose the technology because it provides the lowest cash cost of production and best return on investment compared with all other technologies evaluated. UOP's local service and support team has been a key driver for this project's success."Oleflex has been a leading technology for converting propane to propylene for more than 20 years. The C 3 Oleflex process uses catalytic dehydrogenation to convert propane to propylene. Compared with competing processes, UOP's C 3 Oleflex technology provides the lowest cash cost of production, the highest return on investment and the smallest environmental footprint. This superior performance is characterized by low capital cost, high propylene yields, low energy and water consumption, and use of a fully recyclable platinum alumina-based catalyst system. In addition to the C 3 Oleflex process, UOP also licenses its C 4 Oleflex technology, a butane dehydrogenation process to convert isobutane to isobutylene. Download the propylene gap infographic here.UOP LLC ( is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, 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 Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions, a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.Honeywell ( is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials. For more news and information on Honeywell, please visit release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. 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.
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