Momentive Performance Materials Inc. and Zhejiang Xinan Chemical Industrial Group, a major provider of agricultural chemicals and organic silicon products, have announced the planned expansion of manufacturing capacity by their joint venture company, Zhejiang Xinan Momentive Performance Materials Co. Ltd. The joint venture company’s plant in Jiande, China, which has annual production capacity of approximately 50,000 metric tons of siloxane, successfully started its first phase of operations in the fourth quarter of 2010. With the expansion, siloxane production capacity is expected to triple to an estimated 150,000 metric tons per year, beginning in 2013.

In connection with the planned expansion, Zhejiang Xinan and MPM will make capital contributions of approximately $33 million and $32 million, respectively, to the joint venture company for a total new investment of $65 million. The joint venture company is owned 51% by Zhejiang Xinan and 49% by Momentive.

“We are very pleased with the progress of our joint venture with Zhejiang Xinan Chemical Industrial Group,” said John Dandolph, senior vice president and managing director–Asia Pacific for Momentive. “Our commitment to a second phase of this venture reflects both the success of this partnership and our continued focus on investing locally to help serve customers in this important region.”

“The start-up of Zhejiang Xinan Momentive demonstrates the early success of the dedicated cooperation and commitment of the two partners,” said Wang Wei, chairman of the board for Zhejiang Xinan Chemical Industrial Group. “The continued expansion is further proof that we both have high confidence and expectations for a bright future together.”

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