Aug 1 2007
Momentive Performance Materials and Zhejiang Xin'an Chemical Industrial Group Co., Ltd. have received government approval to create a manufacturing joint venture to meet the increasing demand for silicon-based products in China. The new company will focus on optimizing global technology, and on combining a wide range of product lines and resources to develop more customized products.
The planned facility will be located in Jiande, Zhejiang province. During its opening year the new company will have a plant capacity of 50,000 metric tons of siloxane, or approximately 100,000 metric tons of MCS products. The total forecasted investment is $97 million. The new company will be owned 51 percent by Xin'an and 49 percent by Momentive. The new plant will be operational in the first half of 2009.
According to Dr. Jonathan D. Rich, president and CEO, Momentive Performance Materials, "This joint venture in China demonstrates the Company's commitment to pursue acquisition opportunities, invest in new high-impact products, develop new market segments and applications, and find new customers in fast-growing economies. China is a strategic business region for Momentive; we will increase our investment continuously according to our plan, and further improve the silicone finishing facilities in the region. Regarding Momentive's new global strategy, Dr. Rich added, "Momentive is respected for its problem solving capabilities with customers; we help them win more business by providing innovative solutions for their applications. In 2007 and for the next several years, we will continue our global business strategy to realign resources to increase revenues from specialty products while still serving our customers with the core products they depend on. We will invest in and serve diverse end-regions such as China, India, Eastern Europe, and Latin America. Furthermore, we will develop and foster highly technical engineering and R&D capabilities that enable product innovation, research and product development collaboration, and application customization for customers."
The new enterprise also received high praise from Mr. Wang Wei, Chairman of Zhejiang Xin'an Chemical Group Co., Ltd., commenting, "It is our great pleasure to have this opportunity to better serve our customers. With the benefit of advanced technological expertise and a new platform from Momentive, we will definitely enhance our R&D capability and management experience, optimize the manufacturing process, and open up new product applications."
Mme. Rachel Duan, President of Momentive Performance Materials Greater China also expressed her confidence in this joint venture and the opportunities in China, "Momentive is dedicated to growing together with the China silicone region. The new joint venture with Xin'an Chemical Industry Co. is one of our most important investments for the strategic development of expanded services to our customers in China. The location of this facility will help Momentive serve our customers in China with more innovative products and world class service."
Zhejiang Xin'an Chemical Industrial Group is a well-known silicones manufacturing company in China. The company focuses on technological leadership with a well resourced, highly innovative, and industry experienced R&D team