HONEYWELL COMMENCES ADDITIONAL PRODUCTION FOR R-22 REPLACEMENT REFRIGERANTS
18 March 2003 - Honeywell Specialty Materials Europe

The Chemicals business of Honeywell has initiated production of HFC-125 at its new facility located in Geismar, Louisiana. According to Richard Preziotti, Vice President and General Manager of Honeywell Chemicals, 'We are committed to being the premier manufacturer and supplier of non-ozone depleting refrigerants for equipment manufacturers and service channels around the world, and this new facility clearly demonstrates our commitment to our customers. The recent restrictions on R-22 production put in place this year by the United States Environmental Protection Agency are just the latest indication of the global trend away from HCFCs and toward refrigerants such as R-410A that use HFC-125. This expansion is perfectly timed.'

Honeywell broke ground on the facility in May of 2001, and subsequently invested over $100 million to design and construct the plant in time for the 2003 North American cooling season. The plant is dedicated to producing HFC-125, the core ingredient in five widely used refrigerant blends: R-404A, R-410A, R-407C, R-507, and R-402A, also known as HP80. Honeywell markets these refrigerants under the HONEYWELL brand in Europe and the Middle East.

Jeremy Steinfink, Global Business Director for Refrigerants at Honeywell added 'Because of the sustained growth in demand for non-ozone depleting refrigerants, we are adding sales, marketing, and technical expertise globally to provide our customers with the support they expect from the industry's refrigerant leader. Honeywell is the world's largest producer of non-ozone depleting refrigerants for stationary air-conditioning and refrigeration applications, and this new world-scale facility will allow us to ensure reliable supply to customers around the world.'

According to Prezziotti, 'Geismar was the best place to locate this new facility for several reasons. First, we already had our multi-products plant on the site where we manufacture a variety of HFC and HCFC refrigerants, giving us both an experienced workforce and a proven supply chain. Second, the new HFC-125 plant was constructed in tandem with our new HFC-245fa facility which produces ENOVATE 3000, the leading HFC replacement for HCFC-141b in insulating foam. By constructing both plants at one time we reduced our overall plant construction costs, although together they represent an investment in excess of $200 million in new HFC capacity. Third, Geismar is the home of our 'HF' or hydrofluoric acid manufacturing facility, the world's largest such plant and a key raw material for producing HFC and HCFC chemicals.'

The new HFC-125 facility has begun production and is anticipating a ramp-up to full production during the first quarter of 2003. Honeywell plans to commemorate the plant start-up with an official ribbon-cutting ceremony for customers and employees in late February at Honeywell's expansive Geismar site.

http://www.honeywellrefrigerants.com

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