MORRIS PLAINS, N.J., April 7, 2016
- Honeywell (NYSE: HON) announced today that it has entered into a supply agreement with a Chinese manufacturer to produce Honeywell Solstice® yf, further extending its global supply base for this low-global-warming-potential mobile air conditioning refrigerant.
Under a multi-year agreement, Juhua Corp., one of China’s top fluorine material enterprises, will manufacture
in China for Honeywell, and Honeywell will market and sell the product to customers in the U.S and Europe. Production is expected to begin by the end of 2016. In addition to helping to meet worldwide demand, production in China can help support the future adoption of Solstice yf in the region. The additional production will complement capacity currently being built by Honeywell in the U.S.
Solstice yf, also known as HFO-1234yf, is a next-generation hydrofluoro-olefin (HFO) refrigerant with a global warming potential (GWP) of less than 1 – lower than carbon dioxide -- that is a near drop-in replacement for R-134a, a hydrofluorocarbon (HFC) with a GWP of 1,300. “Honeywell’s investments, and that of its partners, will ensure that customers will have a reliable supply of this groundbreaking, environmentally preferable technology that is safely cooling more than 8 million cars worldwide,” said Ken Gayer, vice president and general manager of Honeywell Fluorine Products. “This agreement with Juhua will ensure supply to meet growing global demand as well as to help support future adoption of low-global-warming-potential products in China in response to concerns about increasing global greenhouse gas emissions.” This agreement follows Honeywell’s recent announcement of another regional manufacturing supply agreement for Solstice yf and is in line with Honeywell’s commitment to meet growing demand through a robust and diversified global supply infrastructure. Honeywell and its suppliers are investing approximately $300 million to increase global production capacity for Solstice yf, including the construction of a new, world-scale manufacturing plant using new process technology at the company’s existing Geismar, La., refrigerants manufacturing site.Solstice yf is also being used in a growing number of stationary air conditioning and commercial refrigeration applications. The demand for Solstice yf for use in mobile air conditioning is increasing rapidly due to increased global environmental regulations and policies aimed at reducing the global warming impacts of HFCs. These include:• The U.S. Environmental Protection Agency has approved Solstice yf for use as a low-global-warming replacement for R-134a, which is banned in mobile air conditioning systems in new passenger cars and light-duty trucks starting in model year 2021. • Automakers in the U.S. are also adopting Solstice yf to help comply with Corporate Average Fuel Economy (CAFE) standards and vehicle greenhouse gas standards, which aim to improve the average fuel economy and reduce greenhouse gas emissions associated with cars and light trucks.• The MAC directive in the European Union is aimed at reducing greenhouse gas emissions of air-conditioning systems in passenger cars and light commercial vehicles. The directive requires that all cars sold in Europe after Jan. 1, 2017, must meet the new refrigerant requirement of having a GWP of less than 150.Solstice yf is part of a family of stationary, commercial refrigeration and mobile refrigerants, liquid and gaseous blowing agents, solvents and propellants based on Honeywell’s hydrofluoro-olefin technology, which helps customers lower their carbon footprint without sacrificing end-product performance. Honeywell and its suppliers are in the middle of a $900 million investment program in R&D and new capacity to produce next-generation refrigerants, insulation materials, aerosols and solvents that have global warming potentials equal to or better than carbon dioxide and at least 99 percent lower than most technologies used today.For more information about HFO-1234yf, visit www.1234facts.com. Honeywell Performance Materials and Technologies (PMT) is a global leader in developing advanced materials, process technologies and automation solutions. PMT’s Advanced Materials businesses manufacture a wide variety of high-performance products, including environmentally friendlier refrigerants and materials used to manufacture end products such as bullet-resistant armor, nylon, computer chips and pharmaceutical packaging. Process technologies developed by PMT’s UOP business (www.uop.com) form the foundation for most of the world’s refiners, efficiently producing gasoline, diesel, jet fuel, petrochemicals and renewable fuels. PMT’s Process Solutions business (www.honeywellprocess.com) is a pioneer in automation control, instrumentation and services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and petrochemicals, biofuels, life sciences, and metals, minerals and mining industries.
Honeywell (www.honeywell.com) 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 www.honeywellnow.com.This 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.