Honeywell’s refrigerant spin-off Solstice takes shape

Honeywell has officially announced its new publicly traded spin-off refrigerant company, Solstice Advanced Materials, expected to be completed by late 2025 or early 2026, allowing both companies to pursue independent growth.

With projected revenue approaching A$6.7 billion, Solstice Advanced Materials will remain headquartered in Morris Plains, New Jersey, and leverage its flagship hydrofluoroolefin technology, developed by Honeywell with Dupont and used in products such as R1234yf.

Honeywell’s decision echoes that of Dupont, which in 2015 spun off the division that made refrigerants and other products into a separate and publicly traded entity called Chemours.

The executive team that will lead Solstice Advanced Materials includes Honeywell veteran Rajeev Gautam as non-executive chair.

Dr Gautam previously led Honeywell’s Performance Materials and Technologies division and served as president of petrochemical division Honeywell UOP. He currently serves on the board of precision manufacturer NN, Inc.

David Sewell, currently President and CEO of Honeywell’s Advanced Materials business, will retain this role at Solstice Advanced Materials.

He brings more than 30 years of experience, having served as president and CEO of packaging supplier WestRock Company, and held senior roles at paint manufacturer Sherwin-Williams and General Electric.

Tina Pierce, who has been with Honeywell for 25 years, becomes Solstice chief financial officer. She was previously vice president and CFO of Honeywell Industrial Automation and has led financial operations across several business units, including the Performance Materials and Technologies divisions.

Jeff Dormo and Simon Mawson will lead the company’s two business segments as senior vice presidents and general managers.

Both bring deep experience in specialty chemicals and materials, having managed multiple units within Honeywell’s Advanced Materials division.

“We are pleased to have this accomplished team lead Solstice Advanced Materials, and I have incredible confidence in their ability to innovate and grow the business moving forward,” said Honeywell chair and CEO Vimal Kapur.

Solstice Advanced Materials will operate on a global scale, with teams in locations such as Charlotte, Houston, Dublin, Shanghai, Tokyo, Bangalore, Bucharest, and Mexico City.

It will also retain Honeywell’s established manufacturing and research facilities, concentrating on areas like fluorine products, electronic materials, industrial-grade fibres, and healthcare packaging.