COLUMBUS, Ohio -- Momentive Specialty Chemicals Inc. ("Momentive Specialty Chemicals" or the "Company") continues to make significant progress in the development of its new forest product facility in Brazil and has narrowed the potential location to three states, including: Rio Grande do Sul, Santa Catarina and Parana.
In November 2013, the Company announced that it had received approval from its Board of Directors for construction of a forest product facility in Brazil. Following completion of the site selection and permitting process, the Company expects to begin construction in the second half of 2014. Construction of the new facility is expected to take approximately 12 to 18 months. The new facility is expected to have the resin and logistic infrastructure to support a world scale formaldehyde plant of 150 thousand metric tons per year to service the growing panel industry in Brazil.
"We remain committed to the continued growth of our leading Latin American Forest Products Resins business," said Dale Plante, Executive Vice President and President - Forest Products Division. "Today, we operate five sites in the region and the addition of this world-class facility to our portfolio will help us meet the increasing regional demand for our products. We appreciate the continued support of our valued customers and look forward to working with our local partners through this important site section process and beginning construction."
Forest products resins are a key adhesive and binding ingredient used in the production of a wide variety of engineered lumber products, including medium-density fiberboard ("MDF") particleboard, oriented strand board ("OSB") and various types of plywood and laminated veneer lumber ("LVL"). These products are used in a wide range of applications in the construction, remodeling and furniture industries. In addition, the Company is the worlds largest producer of formaldehyde, a key raw material used to manufacture thousands of other chemicals and products, including the manufacture of methylene diphenyl diisocyanate ("MDI") and butanediol ("BDO").
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.
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