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Hexion's Strategic Acquisition of Smartech

On December 3, 2024, Hexion Inc., renowned for its innovations in adhesives and performance materials, announced a groundbreaking acquisition of Smartech. This deal not only represents Hexion's first acquisition in ten years but signifies a pivotal shift toward embracing artificial intelligence in the manufacturing sector.

The Vision Behind the Acquisition

Michael Lefenfeld, President and CEO of Hexion, articulated that this acquisition is a crucial step in their strategy to integrate advanced technologies into manufacturing processes. Smartech, a pioneering entity at the frontier of AI-driven autonomous manufacturing solutions, stands to enrich Hexion's existing capabilities by harnessing the power of machine learning for enhanced efficiency, cost reduction, sustainability, and elevated product quality, particularly within wood processing.

As industries face escalating challenges such as rising raw material costs and environmental pressures, Hexion's acquisition of Smartech positions them as a front-runner in the smart manufacturing arena. Lefenfeld emphasized that combining Smartech's technological prowess with Hexion's extensive expertise in resins and wood processing will enable customers to optimize production, cut waste, and sustain superior quality.

Hanoch Magid, CEO of Smartech, echoed this sentiment, underscoring that the partnership will significantly broaden the reach of their AI technologies globally. This collaboration seeks to provide imminent value to manufacturers striving to navigate the complexities between cost management, modernization efforts, and environmental accountability.

Innovation in Manufacturing: Key Technologies

Smartech’s suite of AI technologies, including notable systems like SmartWAX, SmartPF, and SmartMDI, focuses on streamlining processes and enhancing performance across various manufacturing applications. Particularly, the SmartMDI system employs dynamic chemistry control which ensures precise resin application in engineered wood production. This level of control not only optimizes surface coverage and enhances reactivity but also promises substantial reductions in raw material costs and volatile organic compound emissions.

The implications of the SmartMDI technology are staggering, offering over 15% cost savings per mill, thus balancing economic efficiency with environmental benefits.

Strategic Alignment and Future Perspectives

The acquisition aligns seamlessly with Hexion's five-year transformation initiative which began under American Securities’ ownership in 2022. This strategic direction aims to generate foresight-driven value while establishing Hexion for another century of leadership through a devoted focus on innovation and operational excellence.

Notably, the financial specifics of the Smartech acquisition remain undisclosed, yet it’s clear that Smartech will continue its operations as an independent entity, offering its signature solutions to its global clientele as before.

About Hexion and Smartech

With over a hundred years of experience, Hexion has built a significant portfolio catering to a variety of industries, from construction to energy. Their dedication to advancing sustainable solutions underlines their commitment to addressing pressing environmental concerns. On the other hand, Smartech, established in 2005, has emerged as a leader in AI-driven manufacturing technologies, transforming industry standards for efficiency and quality.

In conclusion, Hexion's acquisition of Smartech heralds a new era in manufacturing, driven by the integration of AI solutions that promise not just improvements in efficiency but a sustainable approach for the future. Both companies are poised to redefine standards within the manufacturing landscape, ensuring they operate in a manner that respects both economic imperatives and environmental responsibilities.