Industrial giant Honeywell International Inc. is spinning off its advanced materials unit into a separate public company.
The new business will have annual sales of $3.8 billion and will include Aclar-brand specialty polychlorotrifluoroethylene (PCTF) film and Spectra-brand ultrahigh molecular weight polyethylene (UHMWPE) fibers. That amount represents just over 10 percent of Honeywell's sales total from 2023. The spinoff is expected to be completed by the end of 2025 or early 2026.
In a news release, officials with Honeywell in Charlotte, N.C., said the new business "will be well-positioned to benefit from an enhanced strategic focus and the financial flexibility to pursue innovation and growth opportunities through investment cycles."
"Given the sustained market demand for advanced specialty chemicals and materials around the globe, we are confident now is the right time for this business to grow independently," Chairman and CEO Vimal Kapur said.
"As a sector leader, this new company will have a greater strategic focus on innovation, enabling it to develop new, more sustainable solutions and products with next-generation chemistry."
Honeywell is in the process of aligning itself around what officials have called three compelling megatrends: automation, the future of aviation and energy transition.
In the release, officials described Aclar as "a high-performance pharmaceutical packaging material critical to preserving prescription drugs and keeping them safe." The material is made from PCTF resin.
Aclar gained business in recent years as a replacement for Barex, a polyacrilotnitrile (PAN) material that was discontinued by Ineos Group in 2015.
Spectra UHMWPE fiber is used in applications ranging from medical devices to protective equipment for military and law enforcement.
Honeywell provides materials and products to multiple end markets, including aerospace, industrial, manufacturing and retail. The firm posted sales of $36.6 billion in 2023.