The technology is scheduled to be installed at the company’s facility in the Donghai Island Port Chemical Industrial Zone in Zhanjiang, China, for production of 450,000t per year of propylene from 2016.

Honeywell subsidiary UOP will also provide training, technical services, catalysts, adsorbents and equipment for the project, which represents the first propane dehydrogenation project in the Southern Guangzhou region, in addition to Oleflex technology.

UOP process technology and equipment business unit senior vice-president and general manager Pete Piotrowski said demand for propylene in China is expected to more than triple by 2020 from 2011 levels.

"The combined Oleflex projects UOP has announced since 2011, including this new project, will increase global propylene production by more than eight million metric tonnes in the next three years," Piotrowski added.

Also known as propene or methylethylene, propylene is a valuable petrochemical used in plastics production.

The technology expected to provide superior performance due to its high reliability, low energy usage, high propylene yields and proven continuous catalyst regeneration (CCR) technology.