Strategic Partnership Combines Advanced AI with Hexion’s Expertise to Boost Efficiency, Sustainability, and Product Quality in the Manufacturing Industry.
Hexion Inc. , a global leader in adhesives and performance materials, announced the acquisition of Smartech , a leading technology company pioneering AI-powered 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 by leveraging cutting-edge AI and machine learning technologies to drive unprecedented gains in production efficiency, cost, sustainability and product quality in the woodworking industry and beyond.
“This is a pivotal 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 , Hexion’s President and CEO. “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 our customers optimize production, reduce waste and deliver superior quality, while driving sustainable growth.”
“Our partnership with Hexion will further amplify the reach and impact of Smartech’s AI technologies across the globe, delivering immediate value to manufacturers facing challenges of cost control, factory 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 in delivering AI-powered solutions that redefine industry standards and foster a more resilient and environmentally responsible manufacturing sector.”
Smartech’s award-winning AI and autonomous manufacturing technologies combine artificial intelligence, advanced control systems, and process optimization algorithms to deliver critical improvements to customers’ processes. Engineered systems, including SmartWAX , SmartPF , and SmartMDI , seamlessly integrate with Hexion’s product portfolio, further strengthening the company’s leadership in the adhesives, construction, and building materials industries.
One of Smartech’s flagship innovations, the patented SmartMDI system, illustrates the potential of this new alliance. By using dynamic chemistry control to enable more precise resin application in engineered wood production, SmartMDI improves surface coverage and reactivity, reduces raw material costs and decreases VOC emissions. The ability to generate significant savings (over 15% per plant) demonstrates SmartMDI’s ability to deliver environmental and economic value to the manufacturing industry.
The acquisition also builds on Hexion’s five-year transformation under the leadership of American Securities , which took ownership in 2022. The move amplifies Hexion’s long-term ambition to drive near-term value gains while positioning the 150-year-old company for its next century of market leadership through a focus on innovation, operational excellence and partnerships that transform bold ideas into real-world solutions.
Financial terms of the Smartech acquisition were not disclosed. Smartech will continue to operate as an independent business entity serving its customers as it does currently.