DES PLAINES, Ill., Oct. 22, 2014 /PRNewswire/ -- UOP LLC, a Honeywell (NYSE: HON) company, announced today that CEPSA Chemical (Shanghai) Co., Ltd., will use UOP process technology to meet demand in China for key petrochemicals used to make plastics for the fast-growing domestic construction and automotive industries.

CEPSA Chemical (Shanghai) will use UOP's Phenol process to produce high quality phenol and by-product acetone, key building blocks for polycarbonate plastics used in construction and automobile production. The new facility will be built at the Shanghai Chemical Industry Park.

China is the world's largest consumer of polycarbonate plastics, representing nearly 30 percent of global consumption. Demand is expected to grow by 13 percent annually during the next 10 years. CEPSA Chemical (Shanghai) is majority owned by CEPSA, an integrated energy company based in Spain.

"We are devoted to the Chinese market, and with this plant, CEPSA will have a network of facilities away from its home country in order to meet demand where the growth is taking place," said Fernando Iturrieta, chief executive officer of CEPSA Química. "Despite recent, lower than expected growth figures, China will continue to be a growing market and CEPSA wants to be there. We are very proud of this project in Shanghai, as it is the first investment of CEPSA in Northern Asia."

The new complex in China will have a capacity of 250,000 MTA of phenol and 150,000 MTA of acetone, and will make CEPSA the second-largest producer of phenol in the world.

In addition to technology licensing, UOP will provide process design and start-up services for the Shanghai complex, which is expected to begin production in November 2014. The new phenol plant will be integrated with CEPSA Chemical's cumene plant, which is being built at the same site.

"UOP and CEPSA have been technological partners across the entire value chain of the refining and petrochemicals industry for nearly 40 years," said Pete Piotrowski, senior vice president and general manager of UOP's Process Technology and Equipment business unit. "CEPSA, a top global phenol producer, currently operates three UOP Phenol units in Spain and our technology has a proven track record of performance and safety in those operations."

UOP's Phenol process is inherently safer, more economical to build, easier to operate, and provides higher product yields than competitive technologies. UOP's total licensed phenol production capacity exceeds 3.4 million MTA, with more than 2.5 million MTA of new capacity added during the past 10 years.

Phenol and acetone are important organic chemical intermediates. They are widely used in the production of polycarbonate, phenolic resin, caprolactam, bisphenol-A (BPA), salicylic acid, fibers, plastics, synthetic rubber, pharmaceuticals, dyes, coatings, and epoxy resins. China is the world's fastest-growing market for phenol and acetone. 

CEPSA is an integrated energy company operating at every stage of the oil value chain, with more than 11,000 employees. It is engaged in petroleum and natural gas exploration and production activities, including refining, the transport and sale of crude oil derivatives, petrochemicals, gas and electricity. CEPSA is Spain's fourth largest industrial group in terms of revenue and has been in the market for more than 80 years.

UOP LLC (www.uop.com) is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywell's Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions, a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and  performance materials.  For more news and information on Honeywell, please visit www.honeywellnow.com.

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SOURCE Honeywell

Copyright 2014 PR Newswire

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