BATON ROUGE, La., July 15, 2013 /PRNewswire/ -- Honeywell (NYSE: HON) today announced that its Performance Materials and Technologies business group will invest more than $200 million at its four production facilities in Louisiana, supported by a comprehensive incentive package spearheaded by Louisiana Economic Development that includes both state and local tax incentives.
The investments, announced at a press conference in Louisiana with Governor Bobby Jindal, are part of a long-term investment and tax incentive framework agreement between the company and state.
Honeywell is examining the feasibility of an additional $1 billion in investments in its Louisiana operations over the next 10 years for a series of projects ranging from the production of next-generation products to the maintenance and improvement of current production processes. Under the long-term incentive framework, additional tax incentives would only be triggered as Honeywell moves forward with these further investments.
"The investments we are announcing today will support our global operations and allow us to produce many new, in-demand products to support refining processes that produce fuels and petrochemicals, as well as advanced materials that are environmentally friendly and energy efficient," said Andreas C. Kramvis, president and CEO of Honeywell Performance Materials and Technologies. "The support of the state of Louisiana, as well as local governments, was key in our decision to locate production of key new products at our Louisiana facilities, helping to ensure their future viability."Governor Jindal said, "Two years ago, we announced Honeywell's $33 million investment to manufacture new environmentally preferable products here in Baton Rouge because the company took notice of the work we were doing to improve Louisiana's business climate. Our partnership continues today through an additional round of projects in Ascension, Caddo and East Baton Rouge parishes. We are proud that a global technology leader like Honeywell is choosing to expand its Louisiana manufacturing sites, create more jobs and deliver more performance technologies throughout the world from right here in our state. Indeed, Honeywell joins a long list of technology companies who are expanding in Louisiana because of our strong and continuously improving business climate, world-class infrastructure and incomparable workforce." Performance Materials and Technologies' four facilities in Louisiana include fluorine products production operations in Baton Rouge and Geismar; a catalyst production facility in Shreveport; and an adsorbent production facility in Baton Rouge for the UOP business unit of Performance Materials and Technologies. The more than $200 million investment announced today includes $169 million for engineering and new production capacity related to new products and $39 million in investments to support ongoing operations. Those investments are expected to generate more than 500 new direct and indirect jobs in the state. If implemented in total, the more than $1 billion in potential additional investments would create an estimated 250 additional new jobs at those facilities and support an estimated 2,000 construction and engineering jobs. In June 2011, Jindal and Kramvis announced a $33 million investment to modernize the company's Baton Rouge fluorine facility to produce new environmentally-preferable products used in insulation, aerosol and refrigerant applications. The company received state tax incentives for that investment, which helped retain 200 jobs at the facility and create new jobs. The company expects to complete that project this year. Honeywell Performance Materials and Technologies is a global leader in developing and manufacturing advanced materials and process technologies. These materials and technologies are used by people every day in a wide range of industries and applications, from petroleum refining to environmentally friendlier refrigerants to bullet-resistant vests. Our advanced materials are critical in the manufacture of products ranging from nylon to computer chips to pharmaceutical packaging. Process technologies developed by our UOP business form the foundation for most of the world's refiners, efficiently producing gasoline, diesel, jet fuel and petrochemicals. UOP is now pioneering technology to produce real fuels from renewable energy sources.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV