Hexion has entered into a definitive agreement to sell its manufacturing site in Yumbo, Colombia to a joint venture led by Master Paints & Chemical Corporation.
The Yumbo site produces decorative paints under the Algreco® brand name amongst others, as well as private-label paints.
The site employs approximately 150 associates and had 2018 revenue of approximately US$15M.
The site includes resin manufacturing capacity for both alkyd and water-based paints, as well as asphalt production capabilities.
The site operated within Hexion’s Forest Products Resins Segment.
"We believe the Yumbo site’s diversified manufacturing capabilities and strong track record of safe operations will serve Master Paints well going forward,” said Craig Rogerson, Chairman, President and CEO.
"Considering the site serves primarily a consumer-facing paint business, the transaction is consistent with our ongoing portfolio optimisation as we further position the Company for profitable growth.
"I would like to thank our associates at the Yumbo site for their many contributions and I am confident they will have exciting opportunities ahead.”
