Market Overview

Hexion Enters New Contract with Fraunhofer Project Center to Jointly Develop Lightweight Composite Technologies for Automotive Applications


Hexion Inc. ("Hexion" or the "Company") today announced a new three-year
contract with the Fraunhofer Project Center ("the Center") in London,
Ontario, Canada, to continue their joint efforts to develop lightweight
composite technologies and high performance systems designed to meet the
demand of mass produced autos.

Hexion, a leading global manufacturer of thermoset resins, and the
Center, which houses production scale parts-making and processing
equipment as well as materials experts, have collaborated since 2013 on
bringing high-performance materials and processing technologies to
automotive manufacturers. These materials and technologies enable
automakers to fabricate lighter-weight, higher-strength parts, reducing
overall vehicle weight and improving gas mileage and performance. The
collaboration has been successful in taking composite solutions into
commercial use.

"This new agreement enables us to continue our work with the Center to
support applications development using high volume composite
manufacturing technologies," said Stephen Greydanus, Hexion's manager of
automotive application development and technical support. "As automakers
seek to lighten vehicle weights, using new composite technologies to
replace steel and other heavier materials is increasingly critical to
vehicle design and production."

The Center enables Hexion to work with major automotive manufacturers to
test materials and produce parts in a production-scale environment.
Hexion has several engineers in residence at the facility, focused on
helping automakers develop, test and integrate the latest technologies
and materials into their new vehicle platforms. A network of prototype
specialists, tool makers and testing firms also collaborate with Hexion
and the Center in this work.

Using its state-of-the-art resin systems from the EPIKOTETM
Resin TRAC and EPIKURETM Curing Agent TRAC 6000 series,
Hexion has collaborated with the Center across a range of composite
manufacturing technologies including high-pressure resin transfer
molding, liquid compression molding, sheet mold compounding, preforming
and injection molding. Working with the Center, Hexion has perfected
rapid cycle time production of large parts for heat-resistant under-hood
applications using its BAKELITE® engineering thermosets. New
product developments address the trend towards electrification of

The Center is located on the campus of Western University and is a joint
venture between the university and the Fraunhofer Institute of Chemical
Technology based in Pfinztal, Germany.

About the Company

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset
resins. Hexion Inc. serves the global wood and industrial markets
through a broad range of thermoset technologies, specialty products and
technical support for customers in a diverse range of applications and
industries. Hexion Inc. is controlled by investment funds affiliated
with Apollo Global Management, LLC. Additional information about Hexion
Inc. and its products is available at

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