"Honeywell has booked around $115 million of revenues from Iran through its non-U. S. subsidiaries since the beginning of 2016, largely in the past year, according to regulatory filings. Unless Honeywell is able to fulfill $100 million in current contracts by early November, it could lose future potential revenue, given that the firm indicated in its SEC disclosures that those contracts aren’t yet completed. U.S.-based Honeywell spokeswoman Victoria Streitfeld said the company and its non-U. S. subsidiaries “operate within the parameters of all applicable U.S. and international regulations and will continue to do so.”" (5/31/2018).
In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our UOP business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:
- Delivered services to Iranian counterparties pursuant to new and existing contracts, which resulted in revenue of approximately $54.2 million (expected total value of these contracts is approximately $81.2 million).
- Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new and existing contracts, which resulted in revenue of approximately $1.8 million (expected total value of these contracts is approximately $3.5 million).
- In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our Process Solutions business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:
- Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new contracts, which resulted in revenue of approximately $1.4 million (expected total value of these contracts is approximately $6.9 million).
- Sold approximately $0.4 million of non-U.S. origin products to distributors (including an Iranian distributor) for use in the gas distribution sector in Iran.
In 2017 the U.S. state of California identified Honeywell as a company under review for potentially having subsidiaries that have contracted to sell gas meters and absorbents for end use in the Iranian petrochemical industry.
In 2017 the U.S. state of Michigan listed Honeywell on its Iran restricted companies list rendering Honeywell ineligible for investment and/or state contracting.
"A new round of talks between Iran and UOP LLC Petroleum industry company of America has kicked off over investment and supply of new technologies. Association of Petrochemical Industry Corporations (APIC) announced that a fresh round of negotiations has begun between Iran’s petrochemical officials and three major American and European petrochemical companies with the main axes of talks being construction of new polymer units, knowledge and technology transfer as well as issuance of license for new petchem plans. On the sidelines of K Trade Fair 2016, the world's premier fair for the plastics and rubber industry in Germany, high ranking officials of Iran’s petrochemical industry held meetings with authorities of France’s Total and Air Liquide as well as America’s UOP, formerly known as Universal Oil Products." (Mehr News, "US petchem giant ready to return to Iran," 10/24/2016).
“U.S. company, UOP, has not delivered a special catalyst to Iran's Isfahan Refinery under pressures as a result of sanctions imposed on Iran's oil sector. Abbas Kazemi, Managing director of National Iranian Oil Refining and Distribution Company, said that Iranian producers have been participating to produce the catalyst inside the country, Iran's Mehr news agency reported on May 20. The catalyst will be used in producing high-quality gasoline by the refinery, he noted…According to media reports, currently, some 6,000 tons of the catalysts is being used in the country per year. Iran imports some $2 billion worth of catalysts, additives, and equipment from European and Asian countries annually.” (Trend, “U.S. company shuns selling catalyst to Iranian refinery,” 5/20/14)
"Shell and UOP LLC, a unit of U.S.-based Honeywell International Inc., were among the companies named in the report published today by the state-run news agency." (Bloomberg, "Shell, UOP Among Companies Put on Blacklist by Iran, Mehr Says," 1/6/2012)
"A pressure group, United Against Nuclear Iran (UANI), is urging industrial conglomerate Honeywell International Inc to stop selling security technology to Iran, the group said on Thursday.
Honeywell security products can be used for surveillance of oil pipelines and nuclear reactors, UANI said in a letter faxed to Honeywell it provided exclusively to Reuters.
The sale of security technology, via a British subsidiary, violates company guidelines for business conduct, UANI said, adding it may sue or pressure the New York Stock Exchange to delist Honeywell if the company continues operations in Iran.
In response, Honeywell said it made a commitment not to undertake new projects in Iran, but is fulfilling its contractual obligations in accordance with U.S. and EU laws and regulations.
'Should the U.S. Congress pass a law that prohibits subsidiaries of U.S. companies from doing business in Iran, Honeywell will comply fully as it does with all other laws in the countries in which it operates,' the company said in a statement.
Honeywell shares were up 0.5 percent at $45.49 in afternoon trading on the New York Stock Exchange.
TARGETING IRAN'S OIL INDUSTRY
New York-based UANI has pressured industrial companies to stop serving Iran's energy sector. The group has said Ingersoll-Rand Plc, General Electric Co, Huntsman Corp and Caterpillar Inc have agreed to sever ties with Iran.
'In the face of overwhelming bipartisan support in the U.S. Congress to economically isolate Iran's oil and natural gas industry, Honeywell continues to make key contributions to the development of Iran's oil industry,' UANI President Mark Wallace said in a letter to Honeywell Chairman and CEO David Cote.
UANI said Honeywell regulatory filings have provided "zero disclosure" about dealings with Iran.
The group's website lists 200 companies targeted over their dealings with Iran, which it argues is developing a secret nuclear weapon and sponsors terrorism.
Its list includes names such as Royal-Dutch Shell Plc, Hewlett-Packard Co, Advanced Micro Devices Inc and Coca-Cola Co. (Reuters, "U.S. Group Targets Honeywell Over Iran," 4/8/10)
"Honeywell acquired 100 percent ownership of Universal Oil Products (UOP), based in Des Plaines, Ill., in 2005. UOP has a British subsidiary that conducts business in Iran; it is part of a consortium with Axens, Technip, Sinopec Engineering Inc. and several Iranian firms that is expanding and upgrading the Arak Refinery in Iran. The project, budgeted to cost $3.7 billion, could nearly triple gasoline production, from 34,000 to 100,000 barrels per day, according to various news reports and FACTS Global Energy, an expert in the industry. Honeywell is a top federal contractor, and UOP recently won a $25 million grant to help develop renewable energy sources. In a statement, the company said that in early 2009 it committed to the State Department that it would not undertake any new projects in Iran, but that it is fulfilling its contractual obligations relating to the Arak refinery. 'Should the U.S. Congress pass a law that prohibits subsidiaries of U.S. companies from doing business in Iran, Honeywell will comply fully,' the statement said." From 2000 through March 2010, Honeywell has been the recipient of $12.9 billion in U.S. federal funds. (The New York Times, "Profiting from Iran, and the U.S.", 3/6/10)
Response - “We want to make clear that Honeywell’s activities in Iran in no way impact our strong jobs record in the United States…With regards to our activities in Iran, Honeywell complies with all U.S. laws and with all laws in every country we operate.” (2017)
UANI has launched a campaign to pressure Honeywell to stop selling security technologies to Iran in addition to halting its oil projects in the country:
- UANI Letter to Honeywell: "Honeywell and Surveillance Projects in Iran" (April 8, 2010)
- Press Release: UANI Calls on Honeywell to End Its Business in Iran (April 8, 2010)