Wedoany.com Report-Dec.17, Hexion Inc., headquartered in Columbus, Ohio, has completed the sale of its manufacturing facility in La Grande, Oregon, to Kronospan, a valued long-term customer.

This transfer supports Kronospan's objectives to enhance production efficiency while aligning with Hexion's efforts to streamline its asset base. The arrangement reinforces the ongoing collaboration between the two organizations across their respective operations.

Upon acquisition, the site will maintain its current workforce, ensuring uninterrupted supply for Kronospan's requirements and upholding standards of reliability and quality for both parties. The companies prioritize a smooth handover process for all personnel involved.

"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."

The transaction contributes to Hexion's broader initiative to refine its offerings and facilities network, emphasizing advancements in cellulosic materials and sustainable high-performance products.

A foundational element of this approach involved acquiring Smartech, whose advanced AI platforms assist operators in boosting productivity, minimizing material loss, and refining processes.

More recently, Hexion transferred its formalin operations along the U.S. Gulf Coast to Ancala, a firm specializing in infrastructure investments.

By divesting the La Grande location, Hexion gains flexibility to allocate capital toward emerging technologies and specialized solutions that address evolving industry demands.

Kronospan's integration of the plant enables optimized workflows tailored to its production scale, leveraging established infrastructure and experienced staff.

The preserved team structure promotes stability, allowing seamless continuation of output without disruptions to downstream activities.

Hexion's refined focus on differentiated segments positions it to innovate in areas where material science intersects with digital enhancements.

AI-driven tools from the Smartech acquisition exemplify this direction, providing measurable improvements in manufacturing precision and resource management.

Sustainable cellulosic developments represent another priority, offering alternatives that combine environmental considerations with functional excellence.

The partnership with Kronospan endures beyond the sale, facilitating mutual progress in shared supply chains.

This strategic adjustment illustrates disciplined portfolio management, balancing legacy assets with forward-looking investments.

As market preferences shift toward efficient and eco-conscious materials, Hexion's repositioning supports delivery of tailored offerings.

The La Grande facility's transition under Kronospan ensures sustained contributions to regional operations and employment.

Overall, the deal exemplifies collaborative industry evolution, where asset transfers enable specialized growth for both buyer and seller while preserving operational integrity.