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Hexion Specialty Chemicals Announces Intent To Close Clayton, UK Manufacturing Site As Part Of Ongoing Business Growth & Productivity Initiatives

Published on 2007-08-02. Author : SpecialChem

COLUMBUS, Ohio -- Hexion Specialty Chemicals announced that as part of its ongoing business growth and productivity initiatives, it intends to shift manufacturing from its location in Clayton, The United Kingdom, to an alternative plant site and plans to cease operations in Clayton at the end of the first quarter 2008.

Hexion acquired the Clayton site in January 2006 from Rhodia as part of its acquisition of Rhodia's decorative coatings and adhesives business. The Clayton operation produces pressure sensitive adhesives (PSAs), and foam control agents used in coatings and other applications.

Hexion will transfer the manufacturing of PSAs to its plant in Sokolov, The Czech Republic, which manufactures similar products and has the capacity to handle the continuing growth of the PSA product line. The company intends to divest its foam control agent business, which it considers non-core to its overall coatings business. The 28 employees of the Clayton site have been informed of the decision, will be considered for other jobs within Hexion and will be provided with appropriate severance and job placement assistance.

"While we regret the impact of this decision on our Clayton associates, this move is necessary for the continued growth and health of the business," said Robert Nosal, vice president, global liquid coating resins. "The Clayton site is capacity constrained and a higher-cost manufacturing operation than our Sokolov plant. It is more economical for us to consolidate PSA production in Sokolov as we continue to develop this business."

About Hexion Specialty Chemicals, Inc.

Based in Columbus, Ohio, Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Additional information is available at www.hexion.com.

Safe Harbor Language

Statements contained in this press release may include "forward-looking statements" about the Company's financial results under the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Forward-looking statements are based on our currently available financial, economic and competitive data and on business plans. Actual results could vary materially depending on risks and uncertainties that may affect the company's operations, markets, services, prices and other factors as discussed in our filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. There is no assurance that the company's expectations will be realized. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.

Source: Hexion Specialty Chemicals, Inc.


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