Momentive Performance Materials Inc., which has a facility in Waterford, has reached a definitive agreement to acquire KCC Corp. Silicones business in Korea and the United Kingdom, as well as its sales operations in China, further enhancing its global capabilities in advanced silicones and specialized applications.
Officials said the acquisition will move the capabilities of KCC’s Silicones business from KCC Corp., Momentive’s majority shareholder, to Momentive, consolidating the companies’ combined capabilities and expertise in advanced silicones.
The company also announced that Ravago Chemicals will serve as its authorized distributor of Momentive products into the plastics industry in the United States and Canada.
Momentive develops advanced silicone and specialty products for customized applications in healthcare, telecommunications, electronics, personal care, construction, transportation, agriculture, energy, and many other industries.
“We’re excited by the synergies this acquisition will bring to Momentive and the broader KCC Corp.,” said Momentive President and CEO Sam Conzone. “It expands our technological capabilities and geographic footprint while also substantially strengthening our position in the Asia-Pacific region including Korea, a country with strong and growing demand for silicones and specialty materials.”
Momentive recently announced a series of strategic steps to transform the company into a leading specialty silicones business, including the recent sale of its Consumer Sealants business to Germany-based company, Henkel, and its phased exit from commodity based products at the Waterford, New York site, while committing to a $15 million investment in advanced electronic materials production.
“This integration allows us to focus our strengths and expertise on advanced technologies,” said Joseph Bruderek, Vice President, Corporate Development and Strategy. “The acquisition of KCC’s Silicone business is another important milestone in Momentive’s transformation journey.”
Ravago Chemicals, a specialty chemical and ingredient producer and distributor, will distribute Momentive’s high performance PEarlene silicone gum master batches, Silquest silanes, XL-PEarl silane crosslinking systems and SFR silicone fluid flame retardants for plastic applications in the U.S. and Canada, effective immediately. Momentive’s silicone-based polymer additives offer improved processability, enhanced surface and mechanical properties, and flame retardancy for both thermoplastic and elastomeric formulations.
“This alliance with Ravago Chemicals is a milestone for our polymer additives channel-to-market strategy in the United States and Canada,” said Momentive’s global marketing director for polymer additives and electronics Ammar Baray. “Momentive will tap into Ravago’s unique capabilities as both a compounder and distributor of complementary, specialty products to Tier 1 and Tier 2 automotive, wire and cable, and polymer compounding companies.”
Ravago Chemicals has successfully represented Momentive in Europe for the past five years as an authorized distributor of materials including adhesives, coatings, elastomers, sealants, urethane additives and basic silicones, officials said.
“We’re excited for the opportunity to expand our channel partnership by representing Momentive’s polymer additives products throughout the United States and Canada,” said Ravago’s vice president of business segments & strategy Hector Rodriguez.