Hexion, a leading global producer of adhesives and performance materials, has announced the sale of its U.S. Gulf Coast formalin business to Ancala, an independent infrastructure manager.

The deal includes facilities in Baytown, Texas; Luling, Louisiana; and Geismar, Louisiana, along with multi-year customer contracts. These sites rank among the largest suppliers of methanol-based raw materials in the region. Financial terms were not disclosed.

Ancala has established a new company, Valentra, to operate the acquired sites. Valentra will retain employees from Hexion’s former division, ensuring continuity for customers and preserving technical and operational expertise. Hexion will continue to supply formalin outside the U.S. Gulf Coast.

The divestiture represents a major step in Hexion’s transformation into a global leader in technology-driven, cellulose-based performance materials.

“With this transaction, Hexion is sharpening its position as a market leader in technology-enabled materials, while demonstrating our rapid progress and commitment to the company’s evolution,” said Michael Lefenfeld, President and CEO of Hexion.

“By uniting our deep expertise with bio-based chemistries, precision manufacturing, and AI enablement, we’re engineering solutions that outperform traditional materials in performance, economics, and sustainability. Our focus on high-value innovation positions Hexion at the center of a generational shift to cellulose-based materials. As global industries accelerate toward lower-carbon, higher-efficiency systems, this is where the next wave of growth and value creation will occur. Hexion intends to lead that shift.”