Momentive is one of the leading silicone companies in the world. What are the main applications of silicones?

Momentive is a pioneer in the silicone industry with 75+ years of experience in the market; Neil Armstrong took the first step on the moon wearing boots made of our silicones. Today, we operate in more than 40 locations, with offices in more than 20 countries, and we have more than 5,000 employees. We deliver technologies, solutions, and processes designed to propel our customer’s products forward—products that have a profound impact on everyday life, from the silicone in your mobile phone, silicones in shampoos and other personal care products, silicones for contact lenses, silicones used in car components etc.

Can you give us a brief overview of Momentive’s presence in Southeast Asia?

We are one of the two silicone producers with a manufacturing presence in Southeast Asia. We have sales offices in six locations across the region, and our manufacturing base is Rayong, Thailand, which allows us to be close to customers. Southeast Asia is well-connected, allowing companies to manufacture cost efficiently and easily ship their products anywhere in the world.

Momentive has recently announced investments to expand specialty silicone production in Thailand. What has driven this expansion?

Investing in a second manufacturing plant in Thailand is part of our strategy to strengthen our position as a leading silicone producer in the region. Southeast Asia has one of the highest GDP growth rates in the world, and we see huge potential to grow our business here. The greenfield investment will be fully dedicated to specialty products for personal care, agriculture, foam (the PU business), and paints and coatings additives. The new site is also designed to accommodate potential future expansions.

Consumer spending has been consistently increasing in Southeast Asia. This coupled with increased government spending and new investments in high value manufacturing makes Southeast Asia an ideal location for expansion investment.

When we looked at the best destination to invest in, we evaluated multiple countries which had a strong export-oriented economies and large domestic populations, however; we zeroed in on Thailand, which has both a sizeable local market and excellent export capabilities.

Momentive has just launched the HARMONIE™ range for personal care and beauty products. Could you tell us about your innovation efforts to make your products green?

We have recently launched HARMONIE™ – a pioneering range of high-performance derived natural and natural ingredients for the beauty and personal care industry. The HARMONIE product range combines Momentive’s world-leading technology with derived natural plant and mineral raw materials. Besides personal care, our agriculture products help reduce the quantity of crop protection chemicals used, while our silicone roof coatings, and foams for thermal insulation bring down energy consumption in buildings.

What is your outlook for the specialty silicone markets in 2023?

In 2022, high inflation was offset by pent-up demand, increased spending and travel; therefore, most chemical companies had a strong 2022, even as the drop in demand started to hit in the last quarter. In 2023, consumer confidence remains low, pulled down by high living costs, the ongoing war in Ukraine, and high interest rates. However, with a highly diversified portfolio, we have been able to withstand the decline in our commodities portfolio with our more resilient performance materials portfolio, where demand is holding up. We also see a price challenge, which usually happens when demand softens and companies seek to sell their products at lower rates, but there has not been a drastic change in Southeast Asia compared to last year.

How is the proximity to China impacting Southeast Asian markets?

China has just started experiencing the economic rebound that the rest of the world saw in 2022 because it was still under lockdown last year. Southeast Asia will particularly benefit from the influx of Chinese tourists and increased trade between Southeast Asia and China.

Do you have a final message?

At Momentive, our vision is to be a sustainable solutions provider and drive more environmentally friendly applications and technologies while driving customer focused innovation. Our strategy is stay close to our customers, and drive growth in the region, from the region. We believe Southeast Asia has the potential to be one of the leading manufacturing hubs in the world and we are committed to our investment in the region.