COLUMBUS, Ohio--()--Momentive Specialty Chemicals Inc., a leading global producer of specialty chemicals and materials, and UPC Technology Corporation, a leading Greater China-based producer of specialty chemicals, announced that following the signature of an MOU during May 2011, they have now signed a definitive Joint Venture Agreement creating Momentive Union Specialty Chemicals, a joint venture that will build manufacturing capability in China to produce specialty phenolic resins.
Momentive Union will build its first manufacturing plant in Zhenjiang, Jiangsu, China, adjacent to an existing UPC Technology Chemical manufacturing complex. The new plant will produce a full range of specialty novolac and resole phenolic resins, sold under industry-leading trade names including BakeliteTM resins and Durite resinsTM. These materials are used in applications including refractories, friction, abrasives and electronics. One of Momentive’s predecessor companies invented phenolic resins and Momentive has a rich heritage of more than 100 years of innovation in phenolic technology and product advances.
Ian Harris, the new General Manager of Momentive Union, said, “We believe Momentive’s global leadership in phenolic resins technology, coupled with the regional strength and infrastructure of UPC in Greater China, will create a formidable new player in the Greater China marketplace for these versatile materials.”
The Zhenjiang project will expand the companies’ capability to meet growing demand from customers in China with local manufacturing and solutions tailored to their specific applications, Harris said. Construction is expected to commence in early 2012 after engineering design work and permitting is completed, with completion and commissioning anticipated during the first quarter of 2013.
About UPC Technology Corporation
UPC Technology Corporation (Taiwan Stock Exchange: code 1313) is a leading producer of bulk and specialty chemicals including plasticizers, phthalic anhydride, fumaric acid, maleic anhydride, polyvinyl chloride (PVC), stabilizer, unsaturated polyester resins and epoxy resins. It is part of the MiTAC-SYNNEX Group, a global conglomerate of 40 companies involved in IT/Consumer Electronics design and manufacturing, electronic chemicals, system integration and mobile solutions, distribution and fulfillment service, and food industry. The Group has more than 40,000 employees worldwide and combined 2010 sales of $21.5 billion. Additional information is available at www.msgroup.com.tw
About Momentive
Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, “Momentive”). Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. file separate financial and other reports with the Securities and Exchange Commission. Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about Momentive and its products is available at www.momentive.com
Forward-Looking and Cautionary Statements
Certain statements, including, without limitation, statements regarding capital spending and hiring plans in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, our management may from time to time make oral forward-looking statements. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will,” “include” or “intend” and similar words or expressions. These forward-looking statements reflect our current views with respect to future events and are based on currently available data and our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our operations and other factors. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our financial performance and our substantial leverage. For a more detailed discussion of these and other risk factors, see our Annual Report on Form 10-K for the year ended December 31, 2010 and other filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information or otherwise, except as otherwise required by law.