Ohio Chemical Company Opens Manufacturing Complex in Brazil

April 16, 2010
Plant will serve regions rapidly growing engineered wood products market.

Columbus, Ohio-based Hexion Specialty Chemicals Inc. today opened a resins manufacturing complex in Montenegro, Brazil.

The facility is strategically located to serve large customer plants in the region that use UF resin in the production of engineered wood panels such as particleboard, interior-grade plywood and medium-density fiberboard, according to the company. These engineered wood materials are used in the production of furniture, cabinetry and other wood products as well as other applications.

This plant underscores our commitment to the regional forest products industry, Hexion Chairman and CEO Craig Morrison said. We have been operating in Brazil, and more broadly in Latin America, since the 1940s, and have deep and strong customer relationships here. This investment positions us to continue to serve as a strategic customer partner and regional market leader well into the future.

Hexions Brazilian subsidiary, Hexion Quimica Industria e Comercio Ltda., operates the plant, which has a rated annual capacity of 450,000 metric tons of UF resins. The plant also produces formaldehyde, a basic building block for forest product resin systems, and will have a rated capacity of 150,000 metrics tons for the raw material, according to the company.

The plant employs about 50 Hexion workers and 120 contractors.

Plants Boasts State-of-the-Art Environmental and Safety Protection

In a news release, Hexion emphasized the safety and environmental features of the new facility.

The facility includes state-of-the-art environmental and safety protection, with recycling and reuse of waste streams, strict environmental control and monitoring systems, the company said. About 35% of the $60 million construction cost is related to environmental protection or safety features.

The facility boasts the latest manufacturing technology enabling it to produce leading-edge resins that meet the highest environmental requirements for low-emitting resins, according to the company.

The plant complex sits on 42 acres of land, including a 3.7-acre preserve of native trees. As part of the project, Hexion said it participated in a reforestation project that planted more than 2,000 native trees on the property and an additional 400 native trees in the region.

Hexion said the company also funded an environmental education program that served more than 5,000 children at 23 schools in the area.

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