WATERFORD, N.Y.--(BUSINESS WIRE)--City of Leverkusen and Chempark officials joined Momentive Performance Materials Inc. (“Momentive”) today to officially break ground on a new manufacturing facility in Leverkusen, Germany. This new facility is a critical part of Momentive’s global initiative to expand production capabilities to serve the automotive industry. The Company will invest approximately $30 (€28) million to add dedicated manufacturing capacity for NXT* silane products in the European market. This new facility will join Momentive’s existing Leverkusen operations and network of 24 manufacturing sites located around the world.
“Building new capacity in Leverkusen is well aligned with our targeted growth plans in the global automotive industry and is a key component of our ability to offer a comprehensive portfolio of specialty products. The Leverkusen site will make locally-produced NXT* silane material available in Europe for the first time. The strategic location, proximity to key customers, and a dedicated workforce make Leverkusen the ideal choice,” said Jack Boss, President and CEO.
Momentive’s NXT silane products play an important role in the demand for innovative solutions to reduce automotive fuel consumption. Low rolling resistance tires can help increase fuel economy while reducing carbon dioxide emissions because they minimize wasted energy used to overcome a conventional tire’s rolling resistance. As a result, auto makers and consumers are increasingly seeking low rolling resistance tires to help reduce fuel consumption. Momentive’s innovative NXT silane products are incorporated by tire manufacturers into their tires to provide this reduced rolling resistance while preserving wet traction.
“With the increasing global demand for low rolling resistance tires, NXT silane products are sought after for their ability to help improve tire performance while easily integrating with manufacturer’s existing production methods. Producing NXT silane locally in Europe will help Momentive ensure we can serve the needs of our customers no matter where their operations are located,” said Rich Owins, Vice President of Momentive Silanes.
Previously only produced in the US and exported it to Europe, this new construction, combined with the recent acquisition of the operating assets of Sea Lion Technology, Inc. to improve availability in the US, will greatly improve NXT silane supply reliability for tire manufacturers globally. The Leverkusen NXT silane manufacturing facility is expected to begin production in late 2017.
About NXT Silane
Providing options for enhanced tire performance and overall system cost efficiencies for tire manufacturers worldwide, NXT silane has a unique design that can enable reduced rolling resistance without loss of wet traction, while promoting increased overall production efficiency for tire manufacturers. For more information about NXT Silane, visit our website: https://www.momentive.com/en-US/categories/coupling/nxt-silane/
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 opportunities for customers. Momentive Performance Materials Inc. is an indirect wholly-owned subsidiary of MPM Holdings Inc. Additional information about Momentive and its products is available at www.momentive.com.
Except for historical information, the matters discussed in this press release are forward-looking statements relating to our business. Forward-looking statements are based on management's expectations as of the date hereof. Actual results may differ materially from those expressed or implied by the forward-looking statements. We have no obligation to update any of the information contained or referenced in this press release.
*NXT is a trademark of Momentive Performance Materials Inc.