Praxair, Inc. (NYSE: PX) has signed a 15-year agreement with Honeywell Resins & Chemicals for the purchase of carbon dioxide, a by-product of Honeywell's caprolactam facility in Hopewell, VA. The carbon dioxide will be purified and liquefied at Praxair’s new plant at the Honeywell site which is scheduled to start up in the third quarter of 2013. The plant is expected to produce 450 tons per day which will be used primarily in food freezing and processing as well as beverage applications.
"We are very pleased to expand our business relationship with Honeywell,” said Kevin Foti, vice president, East Region, for Praxair's industrial gases business in the United States. “Praxair’s world-class facility in Hopewell will enable us to better serve our customers as we build additional capacity to take advantage of growth opportunities in the Mid-Atlantic states."
“Honeywell is pleased to forge this new relationship with Praxair,” said Qamar Bhatia, vice president and general manager of Honeywell Resins and Chemicals. “This agreement significantly benefits Honeywell by improving productivity and greatly reducing CO 2 emissions at our Hopewell site.”
Honeywell Resins and Chemicals is one of the world’s largest producers of nylon resin and caprolactam, a critical feedstock used for nylon production. Resins and Chemicals also produces chemical intermediates and is one of the world’s largest producers of ammonium sulfate fertilizer.Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2011 sales of $11 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.