Momentive Specialty Chemicals Inc. Announces Construction of Two New Formaldehyde Plants in Louisiana
COLUMBUS, Ohio - (November 6, 2014) - Momentive Specialty Chemicals Inc. (“Momentive Specialty Chemicals” or the “Company”) today announced the latest expansion of its Forest Products business through the construction of two new formaldehyde plants in Geismar, Louisiana and Luling, Louisiana.
The Company plans to invest approximately $66 million in the construction of these new, world-scale formaldehyde plants primarily in 2014 and 2015, with capacity of more than 400,000 metric tons per year. The Luling site will serve Monsanto by providing formaldehyde through a direct pipeline into its adjacent manufacturing facility. The Luling location is expected to become operational in the first quarter of 2016 and the Geismar site is expected to come online in the fourth quarter of 2015. The Geismar site will also have a direct pipeline delivery system into the adjacent manufacturing sites of BASF Corporation and Huntsman Corporation. The expansion projects, which received tax incentives from Louisiana Economic Development (LED), will support a total of 68 jobs.
“As the global leader in formaldehyde and formaldehyde-based resins for the forest products industry, we are pleased to announce these strategic expansions as they significantly strengthen our presence in North America,” said Dale Plante, Executive Vice President and President - Forest Products Division. “Targeted investments like these, in partnership with our customers, are a key part of our global growth strategy that the Company continues to execute against going forward. The additional capacity, which is complementary to our existing integrated network of assets, will enable us to meet the anticipated growth in the Gulf Coast region for several significant and long-time customers. We also appreciated the opportunity to partner with the LED throughout the expansion planning process.”
“We are thrilled about this expansion and to continue sustainably producing and supplying innovative products that help farmers,” said Matt Ward, Luling Plant Manager, Monsanto.
The new site will become Momentive Specialty Chemicals’ 20th Forest Products site in North America. The Company’s Louisiana-based expansions also follow a recently announced expansion in Curitiba, Brazil. In addition, Momentive Specialty Chemicals is the world’s largest producer of formaldehyde, a key raw material used to manufacture Forest Products resins and thousands of other chemicals and products, including herbicides, fungicides, methylene diphenyl diisocyanate (“MDI”) and butanediol (“BDO”). Forest products resins are a key adhesive and binding ingredient used in the production of a wide variety of engineered lumber products, including medium-density fiberboard (“MDF”), particleboard, oriented strand board (“OSB”) and various types of plywood and laminated veneer lumber (“LVL”). These products are used in a wide range of applications in the construction, remodeling and furniture industries.
About Momentive Specialty Chemicals Inc.
Based in Columbus, Ohio, Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.) is the global leader in thermoset resins. Momentive Specialty Chemicals Inc. 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. Momentive Specialty Chemicals is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about Momentive Specialty Chemicals and its products is available at www.momentive.com.
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