Hexion Inc., a New Jersey corporation with predecessors dating from 1899, is
the world’s largest producer of thermosetting resins, or thermosets, and
a leading producer of adhesive and structural resins and coatings. Thermosets
are a critical ingredient in virtually all paints, coatings, glues and other
adhesives produced for consumer or industrial uses. The type of thermoset used,
and how it is formulated, applied and cured, determines its key attributes,
such as durability, gloss, heat resistance, adhesion or strength of the final
product. Thermosetting resins include materials such as phenolic resins, epoxy
resins, polyester resins, acrylic resins and urethane resins.
Our direct parent is Hexion LLC, a holding company and wholly owned subsidiary
of Hexion Holdings LLC (“Hexion Holdings”), the ultimate parent
entity of Hexion. Hexion Holdings is controlled by investment funds managed
by affiliates of Apollo Management Holdings, L.P. (together with Apollo Global
Management, LLC and its subsidiaries, “Apollo”). Apollo may also
be referred to as the Company’s owner.
Our business is organized based on the products we offer and the markets we
serve. we had two reportable segments: Epoxy, Phenolic and Coating Resins and
Forest Products Resins.
Our products are used in thousands of applications and are sold into diverse
markets, such as forest products, architectural and industrial paints, packaging,
consumer products, composites and automotive coatings. Major industry sectors
that we serve include industrial/marine, construction, consumer/durable goods,
automotive, wind energy, aviation, electronics, architectural, civil engineering,
repair/remodeling and oil and gas field support. The diversity of our products
limits our dependence on any one market or end-use. We have a history of product
innovation and success in introducing new products to new markets, as evidenced
by more than 800 granted patents, the majority of which relate to the development
of new products and manufacturing processes.
We are a large participant in the specialty chemicals industry. Thermosetting
resins are generally considered specialty chemical products because they are
sold primarily on the basis of performance, technical support, product innovation
and customer service. However, as a result of the impact of the ongoing global
economic volatility and overcapacity in certain markets, certain of our competitors
have focused more on price to retain business and market share, which we have
followed in certain markets to maintain market share and remain a market leader.
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