Momentive Specialty Chemicals Inc., a leading global producer of specialty chemicals and materials, and UPC Technology Corporation, a leading China-based producer of specialty chemicals, announced today they have signed a memorandum of understanding to create a joint venture company that will build manufacturing capability in China to produce specialty phenolic resins.
The joint venture company plans to build its first manufacturing plant in Zhenjiang, Jiangsu, China, adjacent to an existing UPC Technology manufacturing complex. The new plant will produce a full range of specialty novolac and resole phenolic resins used in a diverse range of applications including refractories, friction and abrasives. These products are sold under industry-leading trade names including BakeliteTM resins and Durite resinsTM. Construction is expected to commence late this year after engineering design work and permitting is completed, with the plant anticipated to be commissioned toward the end of 2012. Consummation of the joint venture formation is subject to final approval by each company and regulatory review, if applicable.
“We are pleased to partner with UPC Technology, a recognized and respected industry leader, in this important new initiative,” said Marcello Boldrini, Vice President & General Manager for Momentive’s Specialty Phenolics business. “We have a strong commitment to our customers in the region, and this joint venture demonstrates the beginning of a long-term relationship with UPC Technology to better serve them. This initial project will expand our capabilities in the region and enable us to meet growing demand from our customers in China with locally manufactured solutions for their application needs.”
Momentive’s Joe Chan, Managing Director-Asia, said: “The rapid growth of the auto and consumer markets in China are driving strong demand for our specialty phenolic resins. China is now one of the largest markets for phenolics resins in the world, and we anticipate that growth will continue. This project in Zhenjiang will follow on the heels of Momentive’s new CarduraTM monomers plant recently commissioned in Onsan, Korea, and our VersaticTM acids plant now under construction in Shanxi Province, China, to further enhance our regional presence. We plan to continue to invest in China to expand our manufacturing capabilities to better serve our customers.”
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.
Momentive Specialty Chemicals is the global leader in thermoset resins, serving diverse industrial markets through a broad range of technologies, specialty products and technical support for customers in a wide range of industries. Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Specialty Chemicals Inc. and Momentive Performance Materials Inc. (collectively, the “new Momentive”). The new Momentive is a global leader in specialty chemicals and materials that help industrial and consumer companies support and improve everyday life. The new Momentive has more than 10,000 associates and had 2010 combined sales of $7.4 billion. The company is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information 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.