Acquisition reinforces Hexion's commitment to leverage cutting-edge AI technology to foster a more efficient, cost-effective, and environmentally-responsible manufacturing sector
COLUMBUS, Ohio, Dec. 3, 2024 /PRNewswire/ -- Hexion Inc., a global leader of adhesives and performance materials solutions, today announced its acquisition of Smartech, a cutting-edge technology company at the forefront of AI-driven autonomous manufacturing solutions. This strategic acquisition, Hexion's first in a decade, marks a bold step in the company's strategy to revolutionize the manufacturing ecosystem, harnessing cutting-edge AI and machine learning technology to drive unprecedented gains in production efficiency, cost, sustainability, and product quality-in the wood processing industry and beyond.
"This a defining moment for Hexion as we integrate Smartech's world-class artificial intelligence and automated manufacturing capabilities with our unmatched expertise in resins and wood processing," said Michael Lefenfeld, President and CEO of Hexion. "As global manufacturing industries continue to grapple with rising raw material costs, supply chain pressures, and environmental changes, Hexion's investment in AI-driven innovation positions us at the forefront of smart manufacturing. With this technology, Hexion and Smartech will help customers optimize production, reduce waste and deliver superior quality, all while spurring sustainable growth.
"Our partnership with Hexion will further amplify the reach and impact of Smartech's AI technologies across the globe, bringing immediate value to manufacturers who must balance the challenges of cost control, plant modernization, and environmental responsibility," added Hanoch Magid, CEO of Smartech. "With a shared commitment to sustainable innovation, Hexion and Smartech are poised to lead the way to deliver AI-powered solutions that redefine industry standards and foster a more resilient, environmentally-responsible manufacturing sector."
Smartech's award-winning AI and autonomous manufacturing technologies combine artificial intelligence, advanced control systems, and process optimization algorithms to drive critical process improvements for customers. The engineered systems, including SmartWAX, SmartPF, and SmartMDI, integrate seamlessly with Hexion's product portfolio, strengthening the company's leadership in the adhesives, construction, and building materials sectors.
One of Smartech's flagship innovations, the patented SmartMDI system, exemplifies the potential of this new alliance. By using dynamic chemistry control to allow for more precise resin application in engineered wood production, SmartMDI enhances surface coverage and reactivity, reduces raw materials cost, and lowers VOC emissions. The ability to generate significant cost savings-more than 15% per mill-SmartMDI demonstrates its power to deliver environmental and economic value in manufacturing.
This acquisition also aligns with Hexion's 5-year transformation journey under the stewardship of American Securities, which took ownership in 2022. The move amplifies Hexion's long-term vision to deliver short-term value gains while simultaneously positioning the 150-year-old company for its next century of market leadership via a renewed focus on innovation, operational excellence and partnerships that turn bold ideas into real-world solutions.
The financial terms of the Smartech acquisition were not disclosed. Smartech will continue to operate as an independent business entity servicing its customers as it does currently.
About Hexion
Hexion is a leading global producer of adhesives and performance materials solutions. The company provides specialty products and solutions for customers in diverse industries, including construction, agriculture, energy, automotive, and infrastructure protection. With over a century of expertise, Hexion is committed to advancing sustainable solutions that preserve natural resources and address the challenges of a changing climate. Learn more at www.hexion.com.
About Smartech
Founded in 2005 and serving customers across North and South America, Europe and APAC, Smartech is a technology leader specializing in AI-driven manufacturing solutions that optimize efficiency, sustainability, and production quality. Its innovative tools are trusted by top-tier customers worldwide, transforming traditional manufacturing processes and setting new standards in digital automation. Learn more at https://www.smartech.com.
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