Honeywell International Inc. (NYSE: HON) will be constructing a facility for the production of its Sulf-N 26 fertilizer by early 2013.
The company has signed an agreement with J.R. Simplot Co., a Boise, Idaho-based privately held agribusiness firm, to build a facility that will produce Sulf-N 26.
Independent tests have shown that Sulf-N 26 showed significantly less or, in some cases, no explosive power, when compared to traditional nitrate-based fertilizers, Honeywell said.
Sulf-N 26 is a new, dry granular ammonium sulfate nitrate (ASN) fertilizer made from a patented Honeywell process that chemically fuses ammonium sulfate and ammonium nitrate.
Under the terms of the agreement, Honeywell said it will construct and own a modular manufacturing facility at Simplot's Lathrop, California production plant. Simplot will operate the facility and have exclusive rights to market and sell the fertilizer in the Western U.S., Western Canada and Northern Mexico.
"This agreement is an important milestone, allowing us to produce Sulf-N 26 on a large scale and begin to bring this safe and effective fertilizer to the marketplace," said Qamar Bhatia, vice president and general manager of Honeywell Resins and Chemicals. "Our goal is to have the plant built and producing product by early 2013."
Garrett Lofto, president of Simplot's AgriBusiness Group said the new fertilizer fuses ammonium nitrate and ammonium sulfate into a dry, granular product that is easy to handle, safe to ship and store, and is compatible with other Nitrogen, Phosphorus or Potassium ingredients. "It is a unique product that is very well-suited to Western soils, crops and turf grass."
Shares of Honeywell International are up $0.38 or 0.70 percent to $54.55 at 12.51 pm EST on Friday.