Momentive Breaks Ground on Expansion of Specialty Ceramics Plant in Ohio

STRONGSVILLE, Ohio--(BUSINESS WIRE)--Momentive Performance Materials Inc. launched an expansion of specialty ceramic powders production at its manufacturing facility in Strongsville, Ohio, with a groundbreaking ceremony today that was attended by state and local government representatives, company leaders and plant associates.

“We continue to develop leading edge technologies and products to serve our global customers and markets, and in doing so we continue to grow our presence in Ohio. We appreciate the continued support of the State of Ohio and the City of Strongsville in our ongoing business expansion.”

Upon completion in December 2011, the expansion project will increase by 50 percent the plant’s production capacity of boron nitride powder, a specialty ceramic material used in a variety of thermal management applications in the compound semiconductor, semiconductor, and LED lighting industries, and in other industrial and consumer products. Boron nitride powder has the unique ability to provide excellent thermal conductivity, while not conducting electricity. It is used in compound semiconductor manufacturing and in specialized ceramic heat dissipation applications. It is an essential ingredient in specialty materials that transfer heat away from integrated circuit boards, LED lighting microchips, batteries and other electrical components, keeping the devices cooler and significantly extending their service life. The powder is also used in plastics, cosmetics and other diverse applications to impart thermal conductivity, lubricity or other physical performance characteristics.

“This is an exciting day for our Strongsville operation, for our associates here at the site and for our global quartz and ceramics business,” said Joseph P. Reyes, General Manager for Momentive’s Ceramic business. “We continue to develop leading edge technologies and products to serve our global customers and markets, and in doing so we continue to grow our presence in Ohio. We appreciate the continued support of the State of Ohio and the City of Strongsville in our ongoing business expansion.”

The $5.8 million project includes the addition of 6,000 square feet of production space and the installation of special equipment to produce and refine specialty boron nitride powders. The additional 10 manufacturing jobs will bring employment at the Strongsville plant and business offices to 195 associates. In addition to the Strongsville expansion, the quartz and ceramics business also recently broke ground on an expansion of its quartz production operations in Hebron, Ohio, which is expected to create an additional 10 manufacturing jobs. A sister company, Momentive Specialty Chemicals Inc., previously disclosed it anticipates adding 100 jobs over the next several years at its global headquarters in Columbus and customer service center in Gahanna, Ohio. Together, the new Momentive’s operating companies employ 780 associates in Ohio and more than 10,000 associates around the world.

The global quartz and ceramics business is headquartered at the Strongsville facility, located at 22557 West Lunn Road. It also operates two smaller plants in the greater Cleveland area, as well as plants in Japan, China and Germany. Overall, Momentive’s operating companies have more than 100 manufacturing facilities around the world.

About the Company

Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 70-year heritage of being first to market with performance applications for major industries that support and improve everyday life. The company delivers science-based solutions, by linking custom technology platforms to opportunities for customers. Momentive Performance Materials Inc. is an indirect wholly-owned subsidiary of Momentive Performance Materials Holdings LLC, the owner of its sister company, Momentive Specialty Chemicals Inc., the global leader in thermoset resins. Additional information is available at www.momentive.com.

About the new Momentive

Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, the “new Momentive”). The new Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. The new Momentive was formed in 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The company is controlled by investment funds affiliated with Apollo Global Management, LLC and has more than 10,000 associates around the world.

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.