Hexion, a global leader of adhesives and performance materials solutions, has acquired tecnology company Smartech that specialises in AI-driven autonomous manufacturing solutions.

This strategic acquisition, Hexion's first in a decade, marks a bold step in the company's strategy to revolutionize the manufacturing ecosystem, harnessing cutting-edge AI and machine learning technology to drive unprecedented gains in production efficiency, cost, sustainability, and product quality—in the wood processing industry and beyond.

"This a defining moment for Hexion as we integrate Smartech's world-class artificial intelligence and automated manufacturing capabilities with our unmatched expertise in resins and wood processing," said Michael Lefenfeld, President and CEO of Hexion. "As global manufacturing industries continue to grapple with rising raw material costs, supply chain pressures, and environmental changes, Hexion's investment in AI-driven innovation positions us at the forefront of smart manufacturing. With this technology, Hexion and Smartech will help customers optimize production, reduce waste and deliver superior quality, all while spurring sustainable growth.

"Our partnership with Hexion will further amplify the reach and impact of Smartech's AI technologies across the globe, bringing immediate value to manufacturers who must balance the challenges of cost control, plant modernization, and environmental responsibility," added Hanoch Magid, CEO of Smartech. "With a shared commitment to sustainable innovation, Hexion and Smartech are poised to lead the way to deliver AI-powered solutions that redefine industry standards and foster a more resilient, environmentally-responsible manufacturing sector."

This acquisition also aligns with Hexion's 5-year transformation journey under the stewardship of American Securities, which took ownership in 2022. The move amplifies Hexion's long-term vision to deliver short-term value gains while simultaneously positioning the 150-year-old company for its next century of market leadership via a renewed focus on innovation, operational excellence and partnerships that turn bold ideas into real-world solutions.

The financial terms of the Smartech acquisition were not disclosed. Smartech will continue to operate as an independent business entity servicing its customers as it does currently.