Momentive sets up silicones unit near Chennai

CHENNAI: Momentive Performance Materials, a US-based high tech Silicones manufacturing company (formerly GE Bayer Silicones), has set up a new facility for silicones manufacturing and application development at Sriperumbudur near Chennai. It will entail an investment of $ 27 Million in two phases.

With the inauguration of the first phase of the project on Thursday, the company would be shifting its India manufacturing base from its leased facility in Bangalore to the 15-acre land provided by SIPCOT (state industries promotion corporation of TN) at Sriperumbudur.

"Frankly, we are here mainly because the TN industries department moved much faster with approvals and land procurement," Momentive MD and GM-India V P Nalian said. "With the completion of the first phase we have doubled our existing capacity in the country." The second phase, which is expected to be commissioned in 2010, will triple the capacity and complete the investment of US $ 27 million. The unit, apart from supplying to India and south Asia, will also service markets in Africa, south east and west Asia.

"Suppliers of Nokia and Hyundai are some of our main customers. We also find Chennai a convenient location due to its proximity to our target markets and availability of port facilities," Mr.Nallan said. The Chennai unit will employ 150 people at the completion of its second phase, including the 40 employees displaced from the Bangalore plant, which has been closed down. The company has its corporate office and R&D centre in Bangalore. The US $ 2.5 billion company services verticals ranging from telecom and automotive to FMCGs and agriculture.