Citing growing demand in Asia for "energy technology and advanced materials" made by its Performance Materials and Technologies (PMT) unit, Honeywell (NYSE:HON) announced today it will build its first wholly owned manufacturing facility in China.
Honeywell said in its statement that the facility will initially manufacture catalysts and absorbents for use in refining petroleum, processing gas, renewable energies, and petrochemicals. The industrial complex will be located at a 120-acre site in an industrial park in Zhangjiagang, China, about 85 miles outside Shanghai.
Honeywell's most recent quarterly earnings report (Oct. 18) appears to support its description of a growing PMT unit. Of its four business units, which include aerospace, automation and control solutions, PMT, and transportation, PMT saw the largest year-over-year sales growth, though much of the 10% growth in the quarter compared to Q3 of 2012 was due to Honeywell's acquisition of Thomas Russell. Honeywell didn't break out quarterly financial results by region.
President and CEO of the PMT division, Andreas Kramvis, said, "This investment is an additional milestone in expanding PMT's global footprint and demonstrates our commitment to supporting our rapid business growth in China and the rest of Asia."
Financial terms for the new manufacturing facility were not disclosed.
Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.