Honeywell to modernize Austrian Sappi plant
On October 9, Honeywell (HON) said in a press release that it would be using its technology to modernize one of Europe’s oldest paper mills, Sappi Austria Produktions-GmbH & Co. KG, located in Gratkorn, Austria.
The project is estimated to be worth 30 million euros. Honeywell upgraded one of the mill’s paper machines to its Experion PMD automation system in 2015.
As part of the modernization, Honeywell plans to implement several server virtualization, process visualization, and cybersecurity solutions. Honeywell claims that the new system will improve product quality and reduce production costs. The company didn’t specify the completion time of the project.
Karl Weiss, Sappi’s automation project manager, said, “We selected Honeywell because of the company’s track record of success on previous projects and familiarity with the site and our business. This latest project will deliver quality and productivity improvements, cost savings measures and security enhancements that will future-proof operations at Gratkorn in line with Industrie 4.0.”
Stock price update
US markets saw a bloodbath last week. Honeywell stock fell 4.8% and closed at $156.2. Though stock prices fell in a big way across the board, HON managed to trade 1.7% above its 100-day moving average of $153.64, indicating an upward trend. Honeywell outperformed the Invesco Aerospace & Defense ETF (PPA), which fell 10.9%. PPA invests 7.2% of its portfolio in Honeywell.
At the end of the week, Honeywell’s 14-day RSI (relative strength index) was 43, indicating that the stock wasn’t overbought or oversold. An RSI of 70 or above shows that a stock has temporarily moved into the “overbought” position, while an RSI of 30 or below indicates that a stock has temporarily moved into the “oversold” position.