Momentive Performance Materials Inc. will finish its silicone production in Waterford, New York, after promoting its consumer sealant business to the German specialty chemical company Henkel AG and CO. Kg.
Momentive, founded in Waterford, will avoid the production of silicones for the unit until the end of 2021, resulting in the loss of three hundred jobs, authorities said in a press release on August 5. Acquisition value is not disclosed.
Henkel, founded in Dusseldorf, Germany, has a wide variety of well-known brands, adding Persil, Purex and All laundry detergents, as well as Snuggle softeners, Dial soaps and deodorants and Right Guard antiperspirants.
In the same press release, Momentive announced a $15 million investment in the production of electronic fabrics in Waterford.
Momentive “also foresees a two-year transition away from the production of key chemicals at its Waterford plant, which began operations in 1947,” officials said in the statement. They described these movements as “a series of steps to drive their global transition from fundamental chemicals to special silicones.”
“We continue to prioritize and invest in specialized corporations where we have exclusive roles to win,” President and CEO Sam Conzone said in the statement. “Everything we do aims to create a more powerful and more sustainable long-term for our employees, consumers and communities.”
Officials added that in recent years, Momentive has invested approximately $100 million in growth, technology, productivity, protection and reliability at the Waterford site.
The customer sealing unit sold includes sealing products for GE-branded customers sold in home improvement centers, elementary stores and hardware stores. Momentive will continue to manufacture these fabrics until 2021 as a component of a transition source agreement.
Officials said the abandonment of customer putty will allow for a greater increase in exclusive silicones and specialized applications. The agreement does not come with GE’s line of structural sealants, which officials say will “remain a momentary priority.”
“Millions of homeowners and commercial builders have relied on GE-branded consumer sealants for decades, and we remain very proud of that legacy,” added Conzone, who joined the firm in 2008 and was named to his current posts in April.
“Selling this business to Henkel allows Momentive to devote its attention and resources completely to innovation and expansion with complex products that enable our customers’ good fortune,” he added.
After avoiding the production of these materials, Momentive will employ 700 people in Waterford.
“While these adjustments would possibly be complicated in the short term, we will face them in a structured way, appearing empathy and those affected,” Conzone said. “Ultimately, these adjustments are mandatory to position Momentive as a more powerful and sustainable company.”
Momentive manufactures silicone and complex products, adding liquid silicone rubber, for programs in healthcare, telecommunications, electronics and many other industries.
Momentive aligns its history in the silicone activities of General Electric Co.In recent years, Momentive was owned by a personal equity company and was made public before being acquired for $3.1 billion in 2018 through South Korean corporations SJL Partners LLC, KCC Corp. and Wonik QnC Corp.
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