Momentive Specialty Chemicals, Inc. Announces Planned Closure of Forest Products Site in Leuna, Germany

Momentive Specialty Chemicals Inc. has announced that it has commenced consultations with the Works Council to cease production of formaldehyde and formaldehyde-based resins at its Leuna site operated by Momentive Specialty Chemicals Forest Products GmbH (the “Company”). This action will better align European market demand for forest products with Momentive’s existing assets. The Company intends to cease production at the Leuna plant by June 30, 2012.
“We remain committed to serving the European forest products market from our other sites and are well positioned to do so with our existing Momentive assets,” said George Gallacher, Vice President and Managing Director of Momentive’s European Forest Products business.
“The decision to close the Leuna plant is not easy for us, but is an unavoidable action that will allow us to maintain a competitive and profitable cost structure for our European Forest Products business in the future,” said Dale Plante, Executive Vice President and President – Forest Products Division.
Affected associates have been notified and the Company will provide appropriate severance and other support. The site closure impacts 80 associates.
 
About Momentive Specialty Chemicals Inc.
Based in Columbus, Ohio, Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.) is the global leader in thermoset resins. Momentive Specialty Chemicals 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. Momentive Specialty Chemicals Inc. is an indirect wholly owned subsidiary of Momentive Performance Materials Holdings LLC., the owner of its sister company, Momentive Performance Materials Inc., a global leader in silicones and advanced materials. Additional information is available at www.momentive.com
 
About Momentive
Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, “Momentive”). Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. file separate financial and other reports with the Securities and Exchange Commission. Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about Momentive and its products is available at www.momentive.com.
 
Contacts:
 
Media
Michael Stahl
+49 (0) 2374 925-467
michael.stahl@momentive.com
 
Investors and Media
John Kompa
+1 614 225 2223
john.kompa@momentive.com