Hexion Acquires Smartech: A Strategic Move Towards AI-Driven Manufacturing Solutions

Hexion Inc., a prominent global producer in the adhesives and performance materials industry, recently announced its acquisition of Smartech, a leading technology company specializing in AI-driven autonomous manufacturing solutions. This strategic acquisition, marking Hexion's first major initiative in a decade, aims to transform the manufacturing ecosystem by leveraging cutting-edge AI technologies and machine learning.

According to Michael Lefenfeld, CEO of Hexion, this is a pivotal moment for the company as it integrates Smartech's advanced AI capabilities into its robust expertise in resin and wood processing. "As global manufacturing industries grapple with rising raw material costs, supply chain pressures, and environmental changes, our investment in AI-focused innovation positions Hexion at the forefront of smart manufacturing," he stated. The collaboration aims to assist clients in optimizing production, reducing waste, and delivering superior quality—all while promoting sustainable growth.

Hanoch Magid, CEO of Smartech, added that this partnership would amplify Smartech's AI technologies and bring immediate value to manufacturers facing cost control, factory modernization, and environmental responsibility challenges. The alignment between Hexion’s commitment to sustainability and Smartech’s innovative approach is set to pave the way for solutions that redefine industry standards and foster a more resilient manufacturing sector.

The technology offered by Smartech includes award-winning AI and autonomous manufacturing innovations that combine artificial intelligence, advanced control systems, and process optimization algorithms. Key systems such as SmartWAX, SmartPF, and SmartMDI seamlessly integrate into Hexion’s product portfolio, enhancing its competitive edge in adhesives, construction, and building materials sectors.

SmartMDI, a proprietary system developed by Smartech, exemplifies the potential of this new alliance. It utilizes dynamic chemical control to enable more accurate resin application in engineered wood production, improving surface coverage and reactivity, significantly reducing raw material costs, and lowering VOC emissions. With potential savings of over 15% per plant, SmartMDI is poised to deliver substantial environmental and economic benefits to the manufacturing industry.

Furthermore, this acquisition aligns with Hexion’s five-year transformation strategy under American Securities, which took ownership of Hexion in 2022. While no financial details regarding the Smartech acquisition have been disclosed, the impact of such a strategic move is anticipated to position Hexion for a strong future as it celebrates its 150th anniversary, focusing on innovation, operational excellence, and transformative partnerships.

Smartech will continue to operate as an independent entity, serving its clients as it currently does, ensuring that both companies can maximize their expertise and innovation capabilities in the manufacturing sector.

Company Backgrounds

Hexion is a significant player in the global adhesives and performance materials sector, offering specialized products and solutions to various industries, including construction, agriculture, energy, automotive, and infrastructure protection. With over a century of experience, Hexion emphasizes sustainable solutions that respect natural resources and tackle climate change challenges. Discover more about their offerings at www.hexion.com.

Smartech, established in 2005, operates worldwide, serving clients in North and South America, Europe, and the APAC region. It focuses on AI-driven manufacturing solutions that enhance efficiency, sustainability, and production quality. Smartech’s innovative tools are utilized by leading clients globally, transforming traditional manufacturing processes and setting new benchmarks in digital automation. More details can be found at www.smartech.com.