DES PLAINES, Ill., Jan. 19, 2016 /PRNewswire/ -- Honeywell (NYSE: HON) announced today that Hyundai Chemical Co. will use Honeywell UOP technology to expand its petrochemicals complex in Daesan Republic, South Korea, allowing it to make its own feedstock material to boost profitability.
The facility will use technology as well as modular equipment from Honeywell UOP to allow the plant to make mixed xylenes, a critical feedstock used by the plant to produce para-xylene, a building block for synthetic fibers, packaging and plastics that is in high demand in Asia.
Back-integrating the facility to make its own feedstock will reduce the plant's dependence on imports of mixed xylenes and its exposure to the volatile market for the feedstock. The plant currently uses Honeywell UOP technology to produce para-xylene.
"Back-integrating this plant using Honeywell UOP technology and equipment will allow Hyundai Chemical to better manage its operations and make it a more competitive player in the market for para-xylene," said Mike Millard, vice president and general manager of Honeywell UOP's Process Technology and Equipment business. "Using modular equipment for the project ensures that the expansion will be operational sooner than if the equipment were built on site."
Honeywell UOP modular equipment is built under controlled conditions in fabrication shops and fully inspected prior to shipment, enabling fast-track delivery, quality assurance and compliance with specifications. The modules are designed to reduce installation time and can result in earlier startup, further improving project economics.
The expansion project will specifically allow the complex to convert naphtha – an intermediate product produced in the oil refining process – into 1 million metric tons per year of mixed-xylenes. Hyundai Chemical selected Honeywell UOP equipment and technology for the expansion due to the efficient and reliable performance of its Parex™ and Isomar™ processes for para-xylene production, which Hyundai Cosmo Petrochemical, a joint venture between Hyundai Oilbank and Cosmo Oil, licensed in 2010.
In addition to licensing, Honeywell UOP will provide the basic engineering, commissioning services, training services, proprietary equipment, catalysts and adsorbents for the new portion of the complex, which is expected to come online in 2016. Honeywell UOP technologies licensed for the expansion include:
Hyundai Chemical Co., Ltd. is a joint venture between Hyundai Oilbank Co., Ltd. and Lotte Chemical. It is a leading producer of nylon and polyester synthetic textiles, based in South Korea.
Honeywell Performance Materials and Technologies (PMT) is a global leader in developing advanced materials, oil and gas processing technologies and industrial automation solutions. PMT's Advanced Materials businesses manufacture a variety of high-performance products, including environmentally friendlier refrigerants and materials used to manufacture products such as bullet-resistant armor, nylon, computer chips and pharmaceutical packaging. Process technologies and equipment from PMT's UOP business (www.uop.com) are the foundation for the world's oil and gas industry, efficiently producing gasoline, diesel, jet fuel, petrochemicals, natural gas 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.
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