Momentive Specialty Chemicals Inc. and UPC Technology Corporation Sign Joint Venture Agreement for Phenolic Resins Production in China

Momentive Specialty Chemicals Inc., a leading global producer of specialty chemicals and materials, and UPC Technology Corporation, a leading Greater China-based producer of specialty chemicals, announced that following the signature of an MOU during May 2011, they have now signed a definitive Joint Venture Agreement creating Momentive Union Specialty Chemicals, a joint venture that will build manufacturing capability in China to produce specialty phenolic resins.

Momentive Union will build its first manufacturing plant in Zhenjiang, Jiangsu, China, adjacent to an existing UPC Technology Chemical manufacturing complex.  The new plant will produce a full range of specialty novolac and resole phenolic resins, sold under industry-leading trade names including BakeliteTM resins and Durite resinsTM.  These materials are used in applications including refractories, friction, abrasives and electronics.  One of Momentive’s predecessor companies invented phenolic resins and Momentive has a rich heritage of more than 100 years of innovation in phenolic technology and product advances.

Ian Harris, the new General Manager of Momentive Union, said, “We believe Momentive’s global leadership in phenolic resins technology, coupled with the regional strength and infrastructure of UPC in Greater China, will create a formidable new player in the Greater China marketplace for these versatile materials.”

The Zhenjiang project will expand the companies’ capability to meet growing demand from customers in China with local manufacturing and solutions tailored to their specific applications, Harris said.  Construction is expected to commence in early 2012 after engineering design work and permitting is completed, with completion and commissioning anticipated during the first quarter of 2013.