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Honeywell to build refrigerant manufacturing plant in China

Honeywell Specialty Materials Europe : 14 October, 2004  (Company News)
New facility to support global air-conditioning and refrigeration industry and expand Honeywell presence in key China growth region.
Honeywell has announced plans to build a manufacturing plant for non-ozone depleting refrigerant products in Qingpu, Shanghai, China. The new facility, expected to be operational in November 2004, was announced during a groundbreaking ceremony in Qingpu attended by Honeywell officials, key customers and Chinese dignitaries.

The plant will serve as the production and service centre in Asia for HFC refrigerants such as R-410A, R-407C and R-404A, which are environmentally-friendlier alternatives to hydrochlorofluorocarbon (HCFC) and chlorofluorocarbon (CFC) refrigerants being phased out globally as part of the 1990 Montreal Protocol on Substances that Deplete the Ozone Layer. This expansion follows Honeywell's recent increase in HFC chemical manufacturing capacity in the United States, which included more than $200 million in new capital investment. The US and Chinese facilities together will expand Honeywell's globally integrated supply system for refrigerants, with facilities in the United States providing some of the source materials for the Chinese facility. The new facility will blend and package reliable, high quality finished products tailored to meet the rapidly expanding and unique needs of the air-conditioning and refrigeration industries in Asia.

The investment also reinforces Honeywell's commitment to the global air conditioning and refrigeration industry. The company recently signed a supply agreement with China's Haier Group, one of the world's leading appliance manufacturers, for a variety of products including refrigerant R-410A. The refrigerant R-410A was invented by Honeywell, and has since become the globally accepted standard for use in new residential and light-commercial air conditioning systems in Asia, Europe, and the United States.

R-410A, a technological innovation with improved heat-carrying properties, allows equipment manufacturers to meet increasingly higher energy efficiency standards for their equipment, in addition to eliminating the use of ozone-depleting chemistry.

'The availability and use of ozone-depleting products worldwide continues to shrink because of environmental regulation,' said Richard Preziotti, Vice President and General Manager for Honeywell Chemicals. 'Demand for environmentally friendlier HFC-based refrigerant blends, blowing agents, and other products is increasing in Asia due to domestic growth, regional environmental regulations, and the growing number of equipment manufacturers expanding or relocating production of their products in China and throughout Southeast Asia. Honeywell will support these customers by providing a reliable source of high purity products, backed by both access to necessary patents and world-class technical support.'

'China ranked as the sixth largest economy by nominal gross domestic product in 2002,' said Dr. James Yuann, President, Asia for Honeywell Specialty Materials. 'Honeywell views China as a major opportunity for its core growth businesses and will continue to invest resources to support customers through increased speed of delivery and localization.'

The new facility is part of an overall Honeywell Specialty Materials plan for growth in the Asia Pacific region, especially China. Honeywell Specialty Materials will open a world-class research and development facility in Shanghai in October 2004. The company also recently acquired manufacturing operations in Thailand to support the semiconductor industry.
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