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Tech Valley News
Momentive to Move Global HQ to Region
Momentive Performance Materials – formerly GE Advanced Materials – plans to invest $150 million over five years in a 124,000-square-foot, state-of-the-art technology center and global headquarters in Rensselaer County. The state legislature recently approved up to $95 million in tax credits and exemptions over nine years for the project.
“New York needs to make smart investments that create jobs and help improve the local economy. This does both,” said Governor David A. Paterson. “We are delighted that Momentive is moving its global headquarters to Tech Valley. With its high quality of life and educated work-force, Tech Valley is well suited for business, and I am quite sure that Momentive will be very happy with this move.”
The company reportedly turned down offers from Atlanta and Raleigh, N.C. to move to Tech Valley.
"They chose here. Why? We have the infrastructure," State Senator Joseph L. Bruno said. "We are where people want to be. People want to live here; people want to go to school here."
Plans are already underway to relocate the company’s headquarters from Wilton, Conn. to Tech Valley beginning August 1, 2008. Construction of the $65 million world-class technology center is expected to begin in 2009 followed by the $16 million global headquarters building.
The company's temporary headquarters will be based at 22 Corporate Woods Blvd. in Colonie.
The new facilities will employ 250 workers with a total annual payroll of approximately $38 million. One hundred fifty of these jobs are new to Tech Valley. The average annual salary of the new jobs will be $153,000.
“We strive to make our customers successful,” said Jonathan D. Rich, president and CEO for Momentive. “To continue to meet and exceed our customers’ needs, we need a world-class technology center for our top-notch talent to design and develop innovative products in order to compete in this highly competitive industry.”
“As a worldwide leader in the production of silicone products, Momentive’s decision to relocate its world headquarters to Rensselaer County once again demonstrates how appealing Tech Valley has become in attracting global technology companies,” said Bruno.
Momentive employs 1,000 workers at its silicone manufacturing and distributing plant in Waterford which used to be a GE Silicones factory. That facility was sold to Apollo Management, a private equity firm, in 2006 as part of General Electric’s $3.8 billion sale of its GE Advanced Materials division.
One hundred jobs would move from Waterford to the new facility.
"When you balance the infrastructure with the people, this is the right place," Rich said.
"We've had a great relationship with New York. The legislation passed by the Senate and the Assembly gives us the opportunity to further expand our presence in Tech Valley. We're pleased with the support in the legislature," said Momentive spokesman John Scharf.
The new technology center and relocation of its corporate headquarters will also allow Momentive to expand its relationship with local colleges and universities via additional student internships and job opportunities with a global company.
Momentive will receive grants and tax incentives from New York State and Rensselaer
County including:
- $6.5 million in capital grants for construction of the headquarters and technology center and for existing infrastructure upgrades at Momentive’s Waterford plant
- Real estate tax reductions over ten years related to the new facilities.
Momentive, the world’s second-largest producer of silicones and silicone derivatives, generated $2.5 billion in worldwide sales in 2006.
Silicones are a multi-functional family of materials used in thousands of products and serve as a critical ingredient in many construction, transportation, personal care, electronic, consumer and agricultural uses.
Silicones are generally used as an additive to a wide variety of end-use products in order to provide or enhance certain of their attributes, such as resistance (heat, ultraviolet light and chemical), lubrication, adhesion or viscosity.
Some of the most well-known, end-use product applications include bath and shower caulk, pressure sensitive adhesive labels, foam products, cosmetics and tires.
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