Agrees to Joint Venture in East Germany
MINNEAPOLIS (AP) _ Honeywell Inc. says it has agreed to establish a joint venture in East Germany that would provide industrial automation equipment to the country’s petroleum and chemical plants.
In what would be its third Eastern bloc joint venture, Honeywell said Monday that it has signed a letter of intent with VE AHB Industrianlagen Import, an East German-owned trading company with which the Minnesota-based company has had a 30-year business relationship.
In 1983, Honeywell established a joint venture with a Bulgarian ministry and did the same in 1988 in the Soviet Union.
Honeywell’s initial investment in the East German venture probably will be less than $1 million, with the deal expected to generate about $50 million in revenues for Honeywell over five years, said Mike Bonsignore, the company’s international president.