COLUMBUS, OHIO – 04/01/2026 – (SeaPRwire) – Hexion has taken another step in reshaping its global manufacturing footprint by completing the sale of its La Grande, Oregon production facility to Kronospan, a long-standing customer and strategic partner. The transaction aligns with both companies’ operational priorities, enabling Kronospan to enhance manufacturing efficiency while allowing Hexion to further streamline its portfolio and focus on higher-value growth areas.
Under the agreement, the La Grande site will continue operating without disruption, supported by the existing workforce. Both companies emphasized their commitment to maintaining continuity for employees and customers throughout the transition, while ensuring the facility continues to meet Kronospan’s production requirements.
The divestiture reflects Hexion’s broader transformation strategy, which centers on concentrating resources in differentiated, high-performance markets. By refining its plant network, the company is creating additional capacity to invest in innovation, digitalization, and advanced manufacturing capabilities, including artificial intelligence-enabled solutions.
Hexion President and CEO Michael Lefenfeld said the transaction supports the company’s long-term vision of leading in cellulose-based performance materials and next-generation manufacturing technologies. He noted that the sale allows Hexion to reallocate capital and expertise toward developing new customer solutions while continuing its collaborative relationship with Kronospan across multiple areas of business.
The La Grande transaction follows a series of strategic actions by Hexion aimed at optimizing its asset base and accelerating its shift toward sustainable, high-performance materials. These steps include the acquisition of Smartech, whose AI-driven manufacturing solutions are designed to help customers improve efficiency, reduce waste, and enhance operational performance. More recently, Hexion announced the divestiture of its U.S. Gulf Coast formalin business to Ancala, an infrastructure investment firm.
Looking ahead, Hexion plans to continue advancing innovation through chemistry, precision manufacturing, and AI-enabled technologies that support improved performance and sustainability outcomes for customers across a range of industrial markets.