From correspondents in Tamil Nadu, India, 09:30 PM IST

US-based silicones manufacturing company Momentive Performance Materials Inc Thursday inaugurated a new manufacturing facility near here.

With the opening of the new plant, the company is now planning to shut down its Bangalore facility, which is functioning on leased premises, and consolidate production in Chennai.

'The Indian plant will be part of our global supply chain catering to our markets in Southeast Asia, Middle East and Africa,' Momentive India managing director V.P. Nalian told reporters after the inauguration.

He said around 60 percent of the planned investment of $25 million has been spent to set up the plant and the rest will be invested during the next phase expansion in 2010.

Nalian said the company's silicone products are being used in polymeric insulators, parts of mobile phone, coatings for automotive components like headlights, pesticide and cosmetics.

(Staff Writer, © IANS)