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HONEYWELL AND AHLSTROM SIGN AGREEMENT

 HONEYWELL AND AHLSTROM SIGN AGREEMENT
 Sale and Joint Venture to Support Pulp and Paper Industry
 BRUSSELS, Belgium; PHOENIX; and HELSINKI, Finland; June 18 /PRNewswire/ -- Honeywell Inc. (NYSE: HON) and A. Ahlstrom Corporation today announced the signing of an agreement whereby Honeywell will purchase 100 percent ownership of several business entities within Ahlstrom Automation, including sole ownership of the Lippke Quality Control System, a state-of-the-art application for quality control of paper production.
 Included are key assets related to automation and process control for the pulp, paper, energy and graphics industries, as well as the Customer Technical Services business and Ahlstrom Automation distribution channels. Honeywell will also support existing business in the food, chemical and steel industries. The potential for merging the Lippke system technology with the Honeywell TDC 3000(TM) system promises real advantages to those seeking integrated solutions for functions in various parts of the mill, officials of both companies said.
 The entities included reside in Germany, Finland, Sweden, the United Kingdom, France, Austria and the United States. Ahlstrom Automation Oy remains in the A. Ahlstrom Corporation and will focus on production of distributed control system hardware and spare parts in Finland.
 The two companies also agreed to launch a joint venture, called Honeywell-Ahlstrom Advanced Controls, based in Varkaus, Finland. In this joint venture, the parties will combine their specific knowledge and resources to develop proprietary control solutions for the Honeywell TDC 3000(TM) distributed control system and process equipment supplied by A. Ahlstrom equipment and its Pyropower division. Honeywell will control 80 percent of this venture.
 "For Honeywell to provide total integrated plant solutions to our customers, we must offer a world-class quality control system for paper production, and we must expand our portfolio of advanced control applications," said Larry Moore, executive vice president and chief operating officer of Honeywell's Industrial and Space Aviation businesses. "We are also pleased to extend our distribution channels in Europe to provide improved service and support. By acquiring these businesses and assets, Honeywell gains greater capability in core markets."
 "At Ahlstrom, we welcome the opportunity to join our established technologies with those of Honeywell, the world's leading supplier of distributed control systems. We also look forward to working closely with Honeywell to develop advanced process solutions for the pulp, paper and power industries. We believe this joint venture will contribute significant new developments to these industries," said Krister Ahlstrom, president and chief executive officer of A. Ahlstrom Corporation.
 Honeywell is a global controls company that provides products, systems and service for homes and buildings, industry, and aviation and space. The company had 1991 worldwide sales of $6.2 billion (U.S.) and employs 58,000 people. Honeywell Europe, which is part of Honeywell Inc., had 1991 sales of $1.4 billion and employs 10,500 people across Europe.
 A. Ahlstrom Corporation is a global, privately owned Finnish company that delivers machinery, equipment and systems for the pulp, paper and power industries; and manufactures specialty papers, packaging materials, cores and board, and various building materials. Sales for 1991 were $2.0 billion (U.S.), with 12,000 employees.
 -0- 6/18/92
 /CONTACT: Kevin Whalen, 612-870-2524, or Frances Emerson, 602-863-5998, both of Honeywell/
 (HON) CO: Honeywell, Inc.; A. Ahlstrom Corporation ST: Arizona, Minnesota IN: SU: JVN


KH -- MN006 -- 1575 06/18/92 14:45 EDT
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Publication:PR Newswire
Date:Jun 18, 1992
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