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Hexion Specialty Chemicals Plans Brazil Expansion

July 24, 2008 at 12:00 AM EDT

Announces Intent to Build Resins and Formaldehyde Manufacturing Complex in Montenegro, Brazil 

COLUMBUS, Ohio – (July 24, 2008) – Hexion Specialty Chemicals, Inc. today announced today that its Brazilian subsidiary, Hexion Quimica Industria e Comercio Ltda., has begun construction of a formaldehyde and resins manufacturing complex to serve the rapidly growing engineered wood products market in southern Brazil.
           
Hexion’s Board of Directors recently approved the construction of a world-scale formaldehyde and resins manufacturing complex in Montenegro, Brazil, with a rated annual capacity of 450,000 metric tons.  Both phenol formaldehyde resins and urea formaldehyde resins will be produced.  The facility will include manufacturing technology enabling it to produce leading-edge resins that meet the highest environmental requirements, such as the E-1 and E-0 standards for low-emitting resins. The facility is expected to begin operations in the second quarter of 2009.
           
“Hexion is a recognized market and technology leader in forest product resins, and this expansion will enable us to efficiently serve our customers as they grow and expand their operations,” said Luiz Cintra, vice president, Latin America, Hexion. 

Manufacturing of forest products such as particleboard and MDF for furniture and plywood for structural applications is expected to grow rapidly in Latin America over the next five years, Cintra said.  Building formaldehyde and resins production capability in the region will enable Hexion to supply resin systems critical to making those products while significantly reducing shipping costs, he added. Hexion currently has three other manufacturing facilities in Brazil, located in Curitiba, Cotia and Paulinia, as well as administrative sales offices in Sao Paulo. 
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About Hexion Specialty Chemicals

Based in Columbus, Ohio, Hexion Specialty Chemicals 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. Hexion Specialty Chemicals is controlled by an affiliate of Apollo Management, L.P. Additional information is available at www.hexion.com.
 
Contacts
Media:
Peter F. Loscocco
Vice President, Public Affairs
Hexion Specialty Chemicals, Inc.
+1 614 225 4127
peter.loscocco@hexion.com
 
or

Luiz Cintra
Vice President, Latin America
 +55 41 3212 1668

Cicero daSilva
General Manager, Forest Products
+55 41 3212-1666

Investors:

John Kompa
Director, Investor Relations
Hexion Specialty Chemicals, Inc.
+1 614 225 2223
john.kompa@hexion.com