Hexion has sold its La Grande, Oregon manufacturing facility to long-time customer Kronospan, a move that sharpens Hexion’s strategic focus on higher-value innovation while supporting Kronospan’s drive for greater manufacturing efficiency.
The transaction transfers ownership of the site while keeping operations intact. The facility will continue to run with the same workforce, ensuring uninterrupted production for Kronospan and continuity for employees as the companies execute a seamless transition.
The sale marks another step in Hexion’s broader effort to refine its portfolio and redirect capital toward cellulose-based performance materials and advanced, AI-enabled manufacturing technologies.
“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.”
For Kronospan, acquiring the La Grande facility supports its strategy to improve manufacturing efficiency while preserving operational stability. The companies emphasized their shared commitment to employees and to maintaining operational excellence following the transition.
The deal builds on a series of strategic moves by Hexion aimed at transforming its plant network and product mix. The company’s recent acquisition of Smartech brought AI-driven manufacturing solutions into its portfolio, enabling customers to reduce waste, improve efficiency, and optimize performance. Hexion also recently announced the divestiture of its U.S. Gulf Coast formalin business to infrastructure investment firm Ancala.
Hexion said it will continue to prioritize innovation through chemistry, advanced manufacturing, and AI-enabled solutions that help customers improve both performance and sustainability as it accelerates its shift toward renewable, cellulose-based materials.
