Honeywell opens China propylene catalysts plant

Honeywell has opened a new manufacturing facility in China to produce catalysts used to make components for plastics production, the company announced today.

This new site in Zhangjiagang City, Jiangsu Province, has begun production of catalysts used to covert propane to propylene as traditional sources for this product shrink. The catalysts are used in the Oleflex process developed by Honeywell’s UOP, a global leader in technology for the oil and gas industries. 

Over the past four years, UOP says it has licensed its Oleflex technology to 30 producers globally, including 25 in China. The first two of these new plants came online in China last year.

“This is another important milestone for Honeywell as we invest in capacity to meet strong customer demand for our game-changing technologies,” said Darius Adamczyk, president and CEO of Honeywell's Performance Materials and Technologies business. “This investment will support our growth while helping China meet growing domestic and global demand for propylene.” 

Honeywell announced its plans to add this manufacturing capacity in October 2013. The facility is located in an established, world-class industrial park about 85 miles northwest of Shanghai. 

In addition to Oleflex catalysts, the site will produce adsorbent materials used in applications including refining and petrochemical production and natural gas processing. Honeywell also is planning production of materials for other fast-growing technologies at the site.

“This campus enables Honeywell to help Chinese petrochemical producers meet global demand for propylene with UOP’s Oleflex technology,” said Scott Zhang, vice president and general manager for Honeywell Performance Materials and Technologies in Asia. “These manufacturing operations use local raw materials, supporting the area economy and the sustainable economic development of Jiangsu Province.”  

Historically, 70% of the world’s propylene was produced from petroleum as a byproduct of making ethylene, another component of plastics. In recent years, ethylene producers increasingly have made ethylene from ethane in natural gas, which produces a negligible amount of propylene. This shift in ethylene production has caused a propylene supply gap, leading to investments in facilities that produce on-purpose propylene.