ERROR 1
ERROR 1
ERROR 2
ERROR 2
ERROR 2
ERROR 2
ERROR 2
Password and Confirm password must match.
If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)
ERROR 2
ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.
Honeywell is buying out Dow Chemical’s 50% stake in UOP, a Des Plaines, Ill.-based petrochemical and refining technology joint venture, for $825 million, giving it full ownership.
UOP employs about 3,000 people and generated $1.2 billion in revenues in 2004. UOP calls itself the world’s largest provider of process technology and services to the refining and petrochemical sector and the largest manufacturer of molecular sieve adsorbents. It also makes more than 300 different catalysts.
Nance K. Dicciani, president of Honeywell's specialty materials business, which will assume UOP, says buying out the joint venture is an attractive option in an age when chemical and energy companies are increasingly trying to get the most out of hydrocarbon resources. "We are very optimistic about our forward-looking prognosis for this business," she says.
Dicciani says the acquisition also fits with Honeywell Specialty Materials' strategy to improve its global reach, acquire technology, meet ongoing and looming trends, and focus on growth. UOP "meets all of those criteria," she notes, adding that Honeywell can also leverage UOP's expertise in other technologies.
The purchase is Dicciani's first big growth step after spending several years trimming down Honeywell Specialty Materials through the sale of fine chemicals, engineering polymers, and other operations. The business is now in the process of selling its U.S. carpet nylon operation to Shaw Industries. "We are finished with the heavy lifting in our portfolio," Dicciani notes.
Dow says its 50% stake in the business, which it received through its 2001 acquisition of Union Carbide Corp., is not strategic. "We believe that our goal of maximizing the value of the business to Dow is best realized through this sale to our joint-venture partner," CEO Andrew N. Liveris says.
Join the conversation
Contact the reporter
Submit a Letter to the Editor for publication
Engage with us on Twitter