Honeywell International Inc. Business Report FY ended Dec. 2014

Business Highlights

Recent Years

Business Overview (FY ended Dec. 31, 2014)

Transportation Systems
-Following the closing of the sale of its Friction Materials business, the Company realigned its Transportation Systems business segment with its Aerospace business segment.

-Transportation Systems sales decreased by 2.6% to USD 3,659 million primarily due to the Friction Materials divestiture, partially offset by continued growth from new platform launches, higher global turbo gas penetration and increased commercial vehicle demand in Europe.


-The Company sold its Friction Materials business to Federal Mogul Corporation. The Honeywell Friction Materials business is headquartered in Glinde, Germany, with significant operations in Romania and China. The business operates only in Europe, China and Brazil and not in the United States. The transaction does not include the Bendix name or line of products or any assets, liabilities or business in the United States. (From a press release on July 14, 2014)


-Asahi Glass Co., Ltd. (AGC) will produce HFO-1234yf, a refrigerant for automotive air conditioners from 2015. HFO-1234yf was jointly developed by the Company and E.I. du Pont de Nemours and Company (DuPont), both headquartered in the U.S. AGC will build a new plant in Chiba, Japan, to produce the new refrigerant by using the company's proprietary fluorochemical technologies. The HFO-1234yf produced at the plant will be sold by the Company to customers in Europe, U.S. and Asia. The new plant and the Company's existing plants in the U.S. will meet growing demand throughout the world including Japan. HFO-1234yf refrigerant is a new product with a very low global-warming potential (GWP) of less than one, which is below the value of CO2. HFO-1234yf has increasingly been chosen for new cars to comply with the Mobile Air Conditioning (MAC) Directive in Europe. Regulations on high-GWP refrigerants are also slated to take effect in Japan in 2015. Currently there are 500,000 vehicles which use HFO-1234yf in the global market. The number is expected to grow to 2 million units by the end of 2014. (From an article in the Nikkan Jidosha Shimbun on January 24, 2014)

Licensing Agreement

-UOP LLC, a unit of the Company, and TPC Group Inc. announced that the two companies have entered into an agreement for UOP to be the exclusive licensor of the proprietary TPC Group OXO-D technology used to produce on-purpose butadiene, a key ingredient for making synthetic rubber used in tire and other applications. TPC Group is North America's producer of butene and finished butadiene. (From a press release on June 12, 2014)


-Honeywell Turbo Technologies (HTT) India was recognized for quality and delivery performance of the Honda 1.5L diesel wastegate turbo engine project. Honda presented HTT India with the award for Best Support In New Model Development Start-Up. The 1.5L D engine is featured in the Honda "Amaze" as well as the new Honda "City". (From a press release on April 11, 2014)


Diesel-powered passenger vehicles
Region/Country Product Customer Engine
Europe Turbocharger VW 1.6L & 2.0L
Europe Turbocharger BMW 2.0L
Europe Turbocharger Daimler 2.0L
U.S.A. Turbocharger Chrysler Ram/Jeep 3.0L
China Turbocharger Jiangling Motors 2.8L
China Turbocharger Anhui Jianghuai Automobile 2.8L
China Turbocharger Jonway Automobile 2.0L
Japan Turbocharger Subaru 2.0L
Korea Turbocharger Hyundai 1.7L/2.5L
India Turbocharger Tata 1.05L
India Turbocharger Ford DV5 1.5L

Gasoline-powered passenger vehicles
Region/Country Product Customer Engine
Europe Turbocharger Renault 0.9L/1.2L
U.S.A. Turbocharger Ford 2.3L
China Turbocharger Dongfeng Peugeot Citroen 1.2L
China Turbocharger SAIC-GM-Wuling (SGMW) 1.2L
Japan Turbocharger Nissan 1.6L/3.0L
India Turbocharger Tata

Region/Country Product Customer Engine
Europe Turbocharger MAN 10.9L/12.5L
Europe Turbocharger Volvo Truck
U.S.A. Turbocharger Hino
China Turbocharger Jonway Automobile 7.8L/10.3L/12.9L
Japan Turbocharger Hino 7.7L
India Turbocharger AVTEC
India Turbocharger Volvo 5.1L

<2015 Vehicles displayed at North American International Auto Show>
Product OEM Model
Turbocharger Ford Mustang
Turbocharger Chrysler Jeep Renegade
Turbocharger Chrysler Dodge 1500
Turbocharger Audi Q7
Turbocharger GM Chevrolet Colorado
Turbocharger VW Passat
Turbocharger Fiat 500
Turbocharger BMW 6 Series
Turbocharger Ford Lincoln MKC


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 1,892 1,804 1,847
% of sales 4.7 4.6 4.9

R&D Structure

-The Company has research and development activities in the US, Europe, India and China.

Product Developments

-The Company expects to launch more than 100 turbocharger applications involving more than 20 new technologies in 2014. These new applications will serve the Company's global customer base with gasoline, diesel, natural gas and hybrid powertrains in both light vehicle passenger and commercial vehicles. The Company is a global leader with more than 500 current turbo programs in various stages of development in its customer pipeline, which are all expected to come to market in the next few years. Honeywell turbos, including the recently announced Honeywell VNT turbo helping power the Fiat "500L" and its 1.6L Multi Jet II diesel engine, make significant contributions to auto makers balancing improved fuel economy, lower emissions and enhanced performance. (From a press release on February 10, 2014)

New Aegis H55WC nylon resin
-Honeywell Resins and Chemicals announced that it has introduced the new Aegis H55WC nylon resin designed to protect cables and electrical wiring used in industrial and consumer products. It provides excellent protection from grease, oil and gas, and resists impact, abrasion and cuts. It is certified by Underwriters Laboratories for use in a variety of demanding applications, including residential and commercial buildings, machine tools, automobiles, appliances, offshore oil platforms and marine equipment. (From a press release on June 17, 2014)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 1,094 947 884

Investment Outside USA

-The Company inaugurated its new Wuhan Plant. The new operation will triple the Company's turbocharger production capacity in China where demand is rapidly growing. The Company's other facilities in China, a plant and a technical center, are located in Shanghai. The technical center is equipped with the world's second-largest facility to test turbochargers. The Company has produced an aggregate total of over 8 million turbochargers at the Shanghai Plant. (From a press release on September 3, 2014)