Transaction advances Hexion's portfolio optimization and cellulose-based innovation focus while also supporting Kronospan's strategy
COLUMBUS, OHIO / ACCESS Newswire / December 11, 2025 / Hexion, a leading global producer of adhesives and performance materials and an American Securities portfolio company, announced today that it sold its La Grande, Oregon manufacturing site to long-standing customer, Kronospan. This transaction is a strategic step that advances both Kronospan's business and Hexion's portfolio refinement activities. It also reflects a shared commitment to long-term partnership between the two companies, with Hexion and Kronospan continuing to collaborate closely across their broader businesses.
Kronospan is acquiring the facility as part of its strategy to further improve manufacturing efficiency. Following the transaction, the site will continue operating with the same team, maintaining Kronospan's production needs and supporting both companies' focus on operational excellence and continuity. Hexion and Kronospan are dedicated to a seamless transition for their employees.
"This divestiture is another clear example of how we are reshaping Hexion to focus on high-value, differentiated growth markets while ensuring strong outcomes for our customers and our people," said Michael Lefenfeld, President and CEO of Hexion. "As we advance our strategy to lead in cellulose-based performance materials and next-generation, AI-enabled manufacturing, this step creates the capacity to redirect resources toward innovation, digital tools, and new customer solutions. We look forward to continuing our long-standing partnership with Kronospan, and to working with them and others across the industry as we scale these AI-enabled manufacturing technologies across the market."
This transaction advances Hexion's transformational strategy to optimize its product portfolio and plant network while accelerating the company's shift toward cellulosic innovation and sustainable, high-performance solutions. The first step of this strategy was the acquisition of Smartech, whose market-leading AI solutions for operational manufacturing are helping customers dramatically improve efficiency, reduce waste, and optimize performance. Recently Hexion announced a strategic divestiture of its U.S. Gulf Coast formalin business to Ancala, an infrastructure investment firm.
Hexion will continue to focus on innovation through chemistry, advanced manufacturing, and AI-enabled solutions that help customers improve performance and sustainability.
About Hexion
Hexion is a global leader in performance materials and industrial technologies, advancing the transition to renewable, cellulose-based solutions. Building on more than 170 years of chemical expertise, the company combines deep knowledge in chemistry, precision manufacturing, and AI-driven process innovation to engineer the next generation of sustainable materials. Hexion's products enable higher performance, efficiency, and circularity across construction, packaging, energy, automotive, and infrastructure markets; industries that are redefining the global economy through decarbonization, digitalization and sustainable performance. With a clear focus on innovation and resource efficiency, Hexion is shaping the future of materials science and helping customers unlock new competitive advantages. Learn more at www.hexion.com.
About American Securities
Founded in 1994, American Securities is a leading U.S. private equity firm that invests in North American companies, primarily in the industrial and B2B services sectors. With $23 billion under management, we partner with businesses generating $200 million to $2 billion in annual revenues. We combine deep sector expertise, differentiated insights and proven internal capabilities to serve as transformational partners that drive growth and build enduring value. Our investment philosophy emphasizes capital preservation through disciplined investing and hands-on engagement, paired with repeatable value creation processes and operational excellence. American Securities is based in New York with an office in Shanghai. For more information, please visit www.american-securities.com.
Contact Information
Maggie Piche
Senior Global Marketing & Communications Leader
maggie.piche@hexion.com
Julie Borm
Head of Corporate Communications
julie.borm@hexion.com
SOURCE: Hexion
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/chemicals/hexion-sells-la-grande-manufacturing-site-to-customer-kronospan-1116339