Hexion Divests U.S. Gulf Coast Formalin Operations to Ancala

Hexion Inc., headquartered in Columbus, Ohio, has finalized the sale of its U.S. Gulf Coast formalin business to Ancala, a prominent independent infrastructure investment firm. The divested assets include major production facilities located in Baytown, Texas, as well as Luling and Geismar in Louisiana. These sites are recognized among the largest regional suppliers of methanol-derived raw materials, making them strategic assets within the U.S. Gulf Coast industrial ecosystem. Although the transaction marks a significant shift in ownership, both companies confirmed that the financial details of the deal will remain confidential.

To ensure smooth operational continuity and retain vital technical knowledge, Ancala has formed a new company named Valentra. This newly established entity will manage and operate the acquired facilities and will be staffed by employees who previously worked in Hexion’s formalin division. By bringing in an experienced team familiar with the plants and processes, Ancala aims to preserve the reliability, service standards, and technical capabilities that existing customers depend on. While the U.S. Gulf Coast operations will now transition to Valentra under Ancala’s leadership, Hexion will continue to supply formalin to markets outside the Gulf Coast region.

The divestiture plays a pivotal role in Hexion’s broader strategic transformation. The company is undergoing a major evolution toward becoming a global leader in advanced, technology-enabled, cellulose-based performance materials. With more than a century of expertise in chemicals and manufacturing, Hexion is now channeling its knowledge into innovative production methods that combine bio-based chemistry, precision manufacturing techniques, and AI-supported operational models. These shifts reflect a growing demand for sustainable and efficient material solutions across multiple global industries.

Sectors such as construction, packaging, transportation, energy, and infrastructure are simultaneously facing pressures to lower carbon emissions, increase efficiency, and secure renewable supply chains. Hexion’s new direction directly addresses these challenges by developing next-generation materials rooted in advanced cellulose chemistry and state-of-the-art manufacturing technology. The company’s increasing focus on sustainability positions it at the forefront of a rapidly expanding market shaped by decarbonization and resource optimization.

Hexion’s President and CEO, Michael Lefenfeld, emphasized that the sale is a crucial milestone in accelerating the company’s strategic shift. According to Lefenfeld, the transaction allows Hexion to concentrate more deeply on high-value, technology-driven innovations that surpass conventional materials in terms of performance, cost efficiency, and environmental impact. He noted that the combination of bio-based chemical expertise, precise engineering, and AI-enabled systems forms the foundation of a new generation of cellulose-based materials expected to influence global industries for decades to come. As markets pivot toward lower-carbon, high-efficiency solutions, Lefenfeld highlighted Hexion’s ambition not only to participate in but to lead this industrial transformation.