Page 158 - CW E-Magazine (22-10-2024)

News from Abroad

BUSINESS RESTRUCTURING
Honeywell announces plan to spin off Advanced

Materials Business

Honeywell has announced a plan to next-generation chemistry to create chemicals and materials pure play with
spin off its Advanced Materials busi- further value for shareowners,” said leading positions across fluorine pro-
ness into an independent, US publicly Mr. Vimal Kapur, Chairman & CEO of ducts, electronic materials, industrial
traded company, which is targeted to be Honeywell. grade fibres, and healthcare packaging
completed by the end of 2025 or early solutions. The business offers techno-
2026. Honeywell expects to execute Continued simplification and port- logies that include the breakthrough
the planned spin in a tax-free manner to folio optimisation low global warming Solstice hydro-
shareowners. The planned spin-off of the Ad- fluoro-olefin (HFO) technology, which
vanced Materials business follows has helped avoid the potential release
“Given the sustained market de- four recent acquisitions Honeywell of the equivalent of more than 326-mt
mand for advanced specialty chemicals announced as part of its disciplined of carbon dioxide into the atmosphere.
and materials around the globe, we are capital deployment strategy. In the past Additionally, the business manufac-
confident now is the right time for this 12 months, Honeywell completed the tures a variety of high-performance
business to grow independently, lever- acquisitions of: Carrier Access Solutions, specialty materials ranging from Spec-
aging its leading technologies and Civitanavi, CAES and Air Products’ tra, a fibre used in high-end armour to
deep customer relationships. As a sector liquified natural gas (LNG) business. protect in law enforcement and military
leader, this new company will have a applications, to Hydranal, a trusted
greater strategic focus on innovation, Upon completion of the spin-off, brand in Karl Fischer titration, to Aclar,
enabling it to develop new, more sus- the Advanced Materials business will a high-performance pharmaceutical
tainable solutions and products with be a sustainability-focused specialty packaging material.

RESTRUCTURING
Idemitsu Kosan and Mitsui Chemicals move ahead

on consolidation of ethylene complexes

Japanese firms – Idemitsu Kosan lene complexes continue to be forced products involved. As the two compa-
and Mitsui Chemicals – have been to operate at a low rate due to both nies reached the conclusion that con-
engaged in deliberations on optimising the opening of large new and expanded solidation will be feasible, they have
production by consolidating their petrochemical complexes, mainly agreed to move on to the FEED phase.
Chiba ethylene complexes. After recently in China, and the diminishing domestic
completing the feasibility study (FS), demand for ethylene. As such, the The FEED phase will look at the clo-
the two companies have announced petrochemical business environment sure of Idemitsu’s facility and consoli-
their intention to move on to the next within Japan is expected to become dation of ethylene production at Mitsui’s
phase – front-end engineering and even tougher. In this backdrop, the two facility. After consolidation, the current
design (FEED). companies conducted an FS earlier this LLP will continue with joint operation of
year focused on consolidating their Mitsui’s facility by that LLP. Feedstock
In 2010, Idemitsu and Mitsui used ethylene facilities in the Chiba region into for the ethylene facility will be supplied
a limited liability partnership (LLP) to a single unit at Mitsui’s current facility. to the LLP by both companies. The con-
establish Chiba Chemicals Manufactur- solidation is expected to be completed
ing LLP and began jointly operating the The FS examined the impact of by fiscal 2027. After conducting FEED,
ethylene facilities owned by both com- consolidating the ethylene facilities on the two companies plan to discuss the
panies in Chiba in order to optimise feedstock procurement, as well as on potential consolidation and then reach a
production. However, Japanese ethy- the production and supply setup for the final decision.

158 Chemical Weekly October 22, 2024

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