US multi-industry conglomerate Honeywell has announced it will spin off its business with nylon (PA 6) resin, feedstock caprolactam and other chemical intermediates to shareholders by 2017. The newly independent back-integrated player to be called AdvanSix wil be headed by Erin Kane. The CEO-designate has served as vice president and general manager of the Honeywell Resins and Chemicals business since October 2014.

AdvanSix is expected to be the largest producer of PA 6 in the US as well as the largest single-site producer of caprolactam, at Hopewell, Virginia.  The company will also be in the top ranks internationally.

Honeywell said the spin-off will be tax-free to its shareholders, and it expects the new construction to have no impact on financial guidance “at this time.

“Our $1.3 billion Resins and Chemicals business enjoys a leading position in the industries it serves and a global cost advantage. It is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers,” said CEO Dave Cote.

Following the spin-off, Cote said Honeywell and AdvanSix “will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business.”

Cote said the spin-off represents another step in the evolution of the Honeywell portfolio, as it “continues to focus on driving breakthrough growth through advanced software capabilities and technology differentiation.”

In addition to the polymer resin used to produce engineering plastics, fibers, filaments, and films used in automotive and electronic applications as well as carpeting, sports apparel, fishing nets and food and industrial packaging and the chemical intermediates phenol, acetone, and cyclohexanone, the AdvanSix portfolio also will include ammonium sulfate fertilizers.

Honeywell picked up the nylon-related businesses in its 1999 acquisition of former US chemical company Allied-Signal. Some of the assets were later sold on, to DuPont and BASF.