Hexion Specialty Chemicals Signs Definitive Agreement To Purchase The Adhesives & Resins Business Of Orica Limited
Thursday August 24, 7:52 pm ET
COLUMBUS, Ohio--(BUSINESS WIRE)--Aug. 24, 2006--Hexion Specialty Chemicals, Inc. announced today that is has signed a definitive agreement to purchase the adhesives and resins business of Orica Limited.
Terms of the agreement were not disclosed. Closing of the transaction is subject to normal governmental approvals.
The Orica adhesives and resins business manufactures formaldehyde and formaldehyde-based binding resins used primarily in the forest products industry. The business includes three manufacturing facilities located in Deer Park (Victoria) Australia, and Mountview and Hornby, New Zealand. The business had 2005 sales of $104 million and employs 100 people.
"Upon completion, this acquisition will strengthen our existing Australian forest products business, provide us entree into the growing New Zealand marketplace and expand our overall footprint in the Asia-Pacific region," said Craig O. Morrison, Chairman and CEO.
The Orica business produces formaldehyde and downstream resin systems including urea-formaldehyde, melamine-formaldehyde, phenol-formaldehyde and additional formulations. These products are used primarily to produce wood panels such as particleboard, medium-density fiberboard and plywood. Its resins also are used in overlays for laminates and veneers, in engineered timber products such as laminated veneer lumber and finger joinery, and in insulation applications.
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.
About Orica Limited
Orica is a publicly listed Australian company operating in over 50 countries with annual sales of about US$3 billion. It is the leader in its chosen markets, globally in commercial explosives and regionally in chemicals and paints.
Source: Hexion Specialty Chemicals, Inc.
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