WATERFORD, N.Y., Aug. 5, 2020 /PRNewswire/ -- Momentive Performance Materials Inc. today outlined a series of steps to accelerate its global transition from commodity basics chemicals to specialty silicones – actions that will focus the company's strengths and expertise on advanced technologies.
The steps include a $15 million investment in specialized Electronic Materials Production and the sale of its Consumer Sealants Business. The company also envisions a two-year transition away from basics chemicals production at its Waterford facility, which began operations in 1947.
"I'm excited about Momentive's future, enabled by innovation that will provide creative solutions to our customers," said President and CEO Sam Conzone, Ph.D. "We are continuing to prioritize and invest in specialty businesses where we have unique capabilities to win. Everything we do is focused on creating a stronger, more sustainable future for our employees, our customers and our communities."
Momentive develops advanced silicone and specialty products for innovative applications in healthcare, telecommunications, electronics, personal care, construction, transportation, agriculture, energy and many other industries.
The three developments announced today include:
- $15 Million Investment in Advanced Electronic Materials Production in Waterford, New York – Momentive announced a $15 million investment in Advanced Electronic Materials Production at the Waterford site to serve rapidly growing high-tech applications. This investment in new capabilities and production will be operational starting in mid-2021 and is part of a $40 million global investment to drive Electronic Materials growth in areas including advanced aerospace, 5G telecommunications, automotive electronics and advanced display applications.
"This investment is a major step in advancing the uniqueness of Momentive's value, technologies and applications for customers around the world," said Sandip Tyagi, President and General Manager of Formulated Specialties. "Moreover, investing in Waterford focuses our talent and expertise, and solidifies its future as a global center for innovation. We are very excited about the opportunities ahead."
Over the past five years, Momentive has invested approximately $100 million in growth, technology, productivity, safety and reliability at the Waterford site.
- Sale of Consumer Sealants Business – Momentive announced the sale of its Consumer Sealants Business to Henkel, encompassing GE-branded consumer sealants sold under license from General Electric Company and available through home-improvement centers, major retailers and hardware stores. Momentive will continue to manufacture consumer-line products through 2021 under a transition supply agreement. The move away from consumer sealants will enable greater focus on unique silicones and specialty applications where Momentive has a strong ability to win. This transaction excludes the GE-branded construction sealants product line, which will remain a Momentive focus.
"Millions of homeowners and commercial builders have relied on GE-branded consumer sealants for decades, and we remain very proud of that legacy," Conzone said. "Selling this business to Henkel allows Momentive to fully focus our attention and resources on innovating and growing with advanced products that enable our customers' success."
The anticipated sale remains subject to customary closing conditions including regulatory clearances.
- Two-Year Transition from Basics Chemicals Production in Waterford, New York – Momentive also outlined a two-year vision to phase out basics chemicals production at its Waterford, New York site. The move would position the facility as a sustainable, global center specializing in advanced silicone technologies. These envisioned changes will be discussed with IUE-CWA union leadership and would not begin until 2021, continuing into 2022.
After the two-year transition, Momentive intends to maintain a major presence in the Capital Region, retaining approximately 700 of the 1,000 current employees and maintaining an estimated $150 million of annual direct economic impact. Waterford would remain one of Momentive's top global production facilities with a sustainable workforce focused on the company's strengths.
"Although these changes may be difficult in the short-term, we will move through them in a structured manner, showing empathy and support to those affected," Conzone said. "Ultimately these changes are necessary to position Momentive as a stronger and more sustainable company."
"Our industry dynamics have changed dramatically over the past decade with rapid commoditization of basics chemicals, globalized supply chains and increasingly specialized customer needs and we want to ensure Waterford remains viable and sustainable," said Michael Foley, President and General Manager of Core Silicones and Intermediates. "We recognize that our plans to modernize and refocus the Waterford site around our positions of strength will bring significant changes for our employees over the next several years and we will support our colleagues and their families along the way, showing them the respect and appreciation they deserve."
Continued Capital Region Investment
Momentive continues to explore additional investment opportunities in the Capital Region, including the potential for a new Global Corporate Headquarters. The company is also evaluating investment opportunities in upgraded Research & Development capabilities.
"The Capital Region is a great home for Momentive as we serve our customers domestically and around the world," Conzone said. "We plan continued investments here and remain committed to creating a sustainable and exciting future for Momentive and our Capital Region employees."
Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 75-year heritage of being first to market with performance applications for major industries that support and improve everyday life. The Company delivers science-based solutions by linking custom technology platforms to customer needs. Momentive Performance Materials Inc. is an indirect wholly owned subsidiary of MOM Holding Company. Additional information about Momentive and its products is available at www.momentive.com.
The Valence Group of Piper Sandler acted as financial advisor to Momentive Performance Materials.
GE is a trademark of General Electric Company. Used under trademark license. Momentive and the Momentive logo are trademarks of Momentive Performance Materials Inc.
SOURCE Momentive Performance Materials Inc.