After a large acquisition attempt failed, Honeywell wants to shed some bulk.

The industrial giant on Thursday said it plans to spin off its resins and chemicals business into a standalone, publicly-traded company named AdvanSix.

The business makes Nylon 6, a polymer resin used to produce engineered plastics, fibers, filaments, and films that, in turn, are used in end products such as automotive and electronic components, carpets, sports apparel, fishing nets, and food and industrial packaging.

The Morris Plains, N.J.-based company’s chairman and chief executive Dave Cote said in a press release that the $1.3 billion business is a market leader with a global cost advantage, and could achieve better growth as a standalone enterprise, “with added flexibility to make capital investments that enhance its offerings and service to customers.”

“Following the spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to [their] respective business,” Cote said.

Erin Kane, currently vice president and general manager of the resins and chemicals business, would serve as president and CEO of AdvanSix. The spinoff is expected to be completed by early 2017 and is subject to certain customary conditions, including, among others, assurance that the spinoff of AdvanSix would be tax-free to Honeywell shareowners.

“The move to spin off some assets comes two months after the New Jersey-based company withdrew a $90 billion bid to beef up by buying fellow industrial giant United Technologies,” The Wall Street Journal wrote. “It backed down from the massive tie up after facing opposition from the target, antitrust regulators, and major customers.”

As part of its strategy to deploy cash, Honeywell last month said its board authorized the buyback of as much as $5 billion of its shares.