Honeywell and DuPont face EU complaint over coolant

Article by Anita Panait, on March 8, 2014

Honeywell International Inc. and DuPont Co. are facing a European Union complaint for infringing antitrust rules over the only coolant that currently complies with standards on greenhouse-gas emissions. The European Commission may send the so-called statement of objections as early as next month, two people privy with the probe told Bloomberg.

The antitrust complaint is expected to intensify an investigation launched in 2011 aimed at Honeywell and DuPont's agreement to develop the chemical -- HFO-1234yf.  The probe, prompted by French company Arkema, also looked into Honeywell's alleged "deceptive conduct" when the chemical was endorsed by a car-industry trade group, and whether it charges "fair and reasonable" license fees to competing company who want to produce it .

The new chemical "is currently considerably more expensive" than its predecessor, remarked David Smith-Tilley, a director at IHS Automotive in London. "With patent-protected supply plus a more expensive manufacturing process, a price premium will exist for some time."

The HFO-1234yf chemical is expected to be a lucrative product for the Honeywell and DuPont as it replaces ozone-depleting alternatives that are already barred in new vehicles sold in the EU starting in 2017.

Honeywell said in 2013 that it is targeting $1.5 billion in revenue from the chemical over five years. "Honeywell is confident that our practices are consistent with the law and that the commission will conclude that we acted in full compliance with European Union competition rules," company spokesman told Bloomberg in an e-mailed statement. [source: Bloomberg]

Topics: honeywell

If you liked the article, share on:

Comments

Recommended

Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries