Hexion Specialty Chemicals Completes Purchase Of Orica Limited's Adhesives & Resins Business

Columbus, OH - Hexion Specialty Chemicals, Inc. announced recently that it has completed its purchase of the adhesives and resins business of Orica Limited. The purchase price was not disclosed.

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.

"We are delighted to complete this transaction and welcome the business and its associates into Hexion," said Craig O. Morrison, Chairman and CEO. "This acquisition strengthens our presence in the Asia-Pacific region and will enable us to expand our service to the forest products marketplace."

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.

SOURCE: Orica Limited and Hexion Specialty Chemicals, Inc.