WATERFORD, N.Y.—Momentive Performance Materials Inc., which sees its future in specialty silicones, is selling off a consumer-facing portion of the business branded with a well-known name.
The move ultimately will cost 300 jobs, but 700 jobs will remain at the New York manufacturing site.
While selling the consumer sealants segment to Henkel A.G. & Co. K.G., the Waterford-based company also plans to invest $15 million into its specialties business.
Momentive will continue to manufacture these consumer products through the end of next year as production shifts to Henkel.
"The move away from consumer sealants will enable greater focus on unique silicones and specialty applications where Momentive has a strong ability to win," the company said in a statement.
GE construction sealants, meanwhile, will remain with Momentive. The consumer sealants business includes GE-brand products sold through home improvement and hardware stores as well as other retailers.
A growing demand in segments including aerospace, 5G telecommunications, automotive electronics and advanced display applications has Momentive investing the $15 million to improve operations at the Waterford site. The project, which is slated to be up and running next year, is part of a $40 million global investment by the company to increase "electronic materials growth," Momentive said.
CEO Sam Conzone, in a video posted on the company's website, cited the importance of Momentive to transform into a more streamlined company.
"We are a company that is pieced together from a bunch of different acquisitions. And when that happens, you really have to innovate and streamline," he said. "We've got to step through the change and say this is who we are. We are a streamlined, more-efficient company through transformation.
"We are going to talk and focus a lot more on our positions of strength and the solutions that our technologies bring to the world," Conzone said.
The transformation will result in job losses at Momentive's site in Waterford.
"We'll do it with empathy with the people who are affected. We will try to impact people as little as possible and make sure people have a path forward beyond the restructure," he said. "We'll be a stronger, more-sustainable company. And that's what change is all about. Change is about making tough decisions and hard changes so that we can be stronger and more effective in the future."
