KCC places entire silicone business under US subsidiary Momentive

South Korea’s building and industrial materials company KCC Corp. has handed over all of its silicone business units and placed them under U.S.-based silicone manufacturer Momentive Performance Materials Inc. for rationalization through integration.

KCC will sell KCC Silicone in Korea, U.K.-based Basildon Chemical and Chinese sales unit KCC Chemical Guangzhou to Momentive Performance Materials, the company announced on Wednesday.

KCC expects the integration of all silicon businesses under one roof would create great synergy among the silicone units, enhancing price competitiveness through improvement in efficiency in cost management, seamless exchange of silicone technologies and expanded sales network.

With the new units added, Momentive now has a manufacturing base in Asia and is expected to expand into new business areas through strengthened technical cooperation.

“The sale is to enhance the capabilities, expertise and management efficiency in silicone business, the company’s future growth engine,” said a KCC official. “KCC and Momentive will be able to enhance competitiveness as ‘one company’ in the global silicone market on a complementary business portfolio.”

KCC acquired a full stake in the world’s second largest silicone maker Momentive Performance Materials at $3 billion in a consortium with local private equity firm SJL Partners and ceramic wares maker Wonik QnC in 2019. It was the largest acquisition deal made by a local private equity fund at that time.

KCC’s share in Momentive which was 50% plus one goes up to 60 percent upon the integration.

KCC shares rose 1.48 percent to finish at 205,500 won ($189.1) in Seoul on Thursday.

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]