With rising demand for propylene and projected solid growth in the market, Honeywell aims to expand the presence of its propylene technology in the country to fill its propylene gap.

The company announced the launch of technology outlook paper on propylene solution and future propylene production in Beijing on Tuesday, eyeing to help Chinese companies strike a balance between environmental and economic benefits under the backdrop of industry transformation as China is working to transform and upgrade traditional industries through preferential policies and incentives.

According to the company, traditional sources of propylene no longer meet industry needs. On-purpose propylene solutions are necessary to fill the propylene gap, and propane dehydrogenation (PDH), a more efficient and cost-effective technology, stands out as the primary on-purpose technology in use.

According to Fu Xiangsheng, vice-chairman of China Petroleum and Chemical Industry Federation, the gap of demand for propylene in China has been substantial, which provides opportunity of development for the propylene industry in China.

"This report provides Chinese enterprises with industry insights together with innovative environmentally preferable technology, helping them face and overcome industry transformation and upgrading," he said.

Domestic companies should also continue improving the technology of propylene production process to lower the environmental footprint, operating expenditure and capital expenditure, he said.

In China, many companies including Shandong Tianhong Chemical, Shandong Wonfull Petrochemical and Jiangsu Jiarui Chemical have chosen Honeywell's Oleflex technology to produce propylene, said the company.

Global installed production capacity of propylene from Oleflex technology now stands at about 7.8 million metric tons per year with nearly 50 percent in China, it said.

"Honeywell's Oleflex process is an important technology for China as the market grapples with booming demand coupled with a more restrictive regulatory environment," said Henry Liu, vice-president and general manager of Honeywell UOP, China.

"Honeywell's commitment to and leadership in the Chinese market provides the industry with critical insights into its future development, as well as cutting-edge, innovative solutions."