Momentive Performance Materials Inc, the world's second-largest silicone producer, said its sales revenue has doubled every three years in China, as it launched a new production facility yesterday.
The United States firm aims to generate sales of US$400 million this year in China, which now accounts for about 15 percent of its global revenue, Momentive's China President Rachel Duan said at the new site launch yesterday.
Momentive yesterday officially commenced production at its US$78-million plant in Nantong, Jiangsu Province, its fourth silicone plant in the nation.
Another two are in Shanghai and one in Shenzhen.
The new plant, its largest investment project in China, has an annual capacity of 20,000 tons of products including silicone fluids, resins, coatings and adhesives serving industries ranging from agriculture, construction to automobile and electronics.
The plant will further improve the integrated capabilities of Momentive for research and development, production and sales in China, enabling it to respond to the market faster, shorten the product supply chain and improve service efficiency, President and CEO Jonathan D. Rich said.
Demand for silicone products has a double-digit growth worldwide, while the pace in China exceeds 25 percent, indicating a short supply, Momentive said.
Rich said China is an "exciting place to both make and sell silicone products."
Momentive's new siloxane plant now under construction is scheduled to start up in late 2009 in Jiande, Zhejiang Province, Rich said.
The joint venture plant, in which local partner Zhejiang Xin'an Chemical Industrial Group Co holds 51 percent, will supply siloxane to its silicone finishing operations including Nantong.
Momentive was created from the sale of General Electric Co's Advanced Materials unit to private equity firm Apollo Management LP in December 2006.
(Shanghai Daily June 19, 2008)