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Honeywell partners with Japanese manufacturer to boost supply of R1234yf

Asahi Glass Company to produce HFO refrigerant, for Honeywell to supply to customers in Europe, US and Asia

Honeywell announced today that it has entered into a supply agreement with Asahi Glass Company to increase production for the HFO R1234yf.

AGC will manufacture the refrigerant in Japan, and Honeywell will sell the product to customers in the US, Europe and Asia. Under the agreement, AGC’s production is expected to begin in mid-2015. 

“Honeywell’s supply agreement with AGC will help us meet immediate demand for HFO1234yf, which is steadily increasing in response to concerns about greenhouse gas emissions and the need to comply with regulations,” said Ken Gayer, vice president and general manager of Honeywell Fluorine Products. “We continue to work with our customers to anticipate long-term demand, which will be met by a new high-volume manufacturing plant we will build in Geismar, Louisiana. Manufacturing locations in both the US and Asia will provide automotive customers with improved supply chain reliability and security.”

Last month, Honeywell announced that the company and its suppliers would invest about $300 million to increase capacity for R1234yf, including building a new manufacturing plant for the refrigerant at Honeywell’s existing Geismar location. The plant will use new process technology and is expected to be fully operational in 2016. The exact size of the plant will depend on supply agreements that Honeywell is putting in place with major customers.

Under the MAC Directive, all cars sold in Europe after 2017 must meet the new GWP requirement of less than 150.

Automakers in the US are also adopting R1234yf to help comply with Corporate Average Fuel Economy (CAFE)and vehicle greenhouse gas standards, Honeywell said, which aim to improve the average fuel economy and reduce greenhouse gas emissions associated with cars and light trucks.The US Environmental Protection Agency allows automakers to receive credits for using HFO-1234yf.   

Nearly half a million cars are on the road today safely using HFO-1234yf, and by the end of 2014, the number of vehicles is expected to exceed 2 million, Honeywell added.

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