Honeywell to spin off $1.3bn resins and chemicals business
US-based Honeywell has announced plans to spin-off its resins and chemicals business into a standalone company named AdvanSix.
Honeywell chairman and CEO Dave Cote said: "Our $1.3bn resins and chemicals business enjoys a leading position in the industries it serves and a global cost advantage.
"Following the spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business.
"We have a well-balanced and successful capital deployment strategy, which includes acquisitions and divestitures, capital expenditures, dividends, and share repurchase, all of which drive additional value to our shareowners over the long-term."
Once the spin-off concludes, AdvanSix will be an independent, global manufacturer of a polymer resin known as Nylon 6 that is used to produce engineered plastics, fibres, filaments and films.
These plastic products are used in end products such as automotive and electronic components, carpets, sports apparel, fishing nets, and food and industrial packaging.
The transaction is subject to certain customary conditions and is expected to conclude by early next year.
Upon completion of the transaction, Erin Kane will serve as president and CEO of AdvanSix.
AdvanSix also produces Sulf-N ammonium sulfate fertilisers and chemical intermediates, including phenol, acetone, and Nadone cyclohexanone.