Hexion Wins Six ACC Responsible Care® Awards

COLUMBUS, Ohio–(BUSINESS WIRE)–The American Chemical Council (ACC) has recognized several U.S.-based
Hexion Inc. (“Hexion” or the “Company”) sites for sustainability
programs focused on improving energy efficiency and waste management as
six Hexion programs were recently named Responsible Care®
award winners honored for excellence in environmental, health, safety
and security performance. In addition, Hexion was nominated as a
finalist for Responsible Care® Company of the Year.

“This is a tremendous honor and a testament to the great work happening
across the Hexion organization,” said Craig O. Morrison, Chairman,
President and CEO, Hexion. “As an organization, we are enthusiastic
supporters of Responsible Care and are committed to best practices
related to sustainability and safety in the U.S. and at our facilities
around the globe.”

The ACC honored four Hexion programs in the Energy Efficiency category
and two in Waste Minimization, Reuse and Recycling. The sites and
programs honored are:

Energy Efficiency

  • Fayetteville, North Carolina: Energy consumption at the Fayetteville
    formaldehyde plant increased 60 percent in 2014 without a
    corresponding increase in production. An internal evaluation found a
    new product mix was requiring additional steam for production. The
    team devised a solution that included distillation improvements at a
    second Hexion site, allowing the new mix to be handled there without
    increasing energy consumption. This production shift resulted in a 50
    percent reduction in energy consumption at Fayetteville with no
    increase at the second site.
  • Moreau, New York: The team identified an opportunity to significantly
    reduce consumption by shifting from two plants operating five days a
    week, 24 hours a day, to a single plant operating seven days a week
    around the clock. The shift reduced the need for natural gas for steam
    production, cutting natural gas use by 51 percent year over year. It
    also reduced electrical consumption for approximately 700 horsepower
    of process equipment, improved cooling water efficiency and reduced
    outside services for security and maintenance. The site added new
    operators to execute the revised operating schedule.
  • Sheboygan, Wisconsin: The Sheboygan site replaced two aging cooling
    towers – representing 26 percent of total electric usage – with a
    single replacement tower engineered with significant energy efficiency
    upgrades. Intelligent controls paired with variable frequency drives
    on all the motors in the tower yielded a 21.1 percent reduction in
    cooling tower electric usage on a normalized basis and reduced total
    site consumption by 6 percent.
  • Bedford Park, Illinois (Argo): The site converted high-pressure sodium
    lights in the process area to 68W LED lights and converted metal
    halide lights in the warehouse to 78W LED lights, reducing total
    energy consumption in those areas from 242.4 million kilowatt-hours
    (MkWh) in 2016 to an estimated 79.7 MkWh in 2017. This is an annual
    reduction of approximately 67 percent, or approximately 162.7 MkWh,
    and could result in savings of more than $16 million year over year.

Waste Minimization, Reuse and Recycling

  • Deer Park, Texas: The Deer Park team used a combination of hardware
    and software upgrades and improved employee training to significantly
    reduce the creation of undesired byproducts in its production
    processes. The improvements reduced waste by 400,000 pounds in 2016,
    resulting in a savings of about $400,000. Just as importantly, the
    project created more ownership from the ground floor in thinking and
    acting to minimize waste production and helped reduce operational
    complexity and the potential for mistakes.
  • Deer Park, Texas: The Deer Park team implemented several process
    improvements designed to reduce the 41,000 pounds of disposed crude
    resin the site produced per month. From the end of 2015 through 2016,
    crude resin disposals were completely eliminated. This created
    significant savings related to disposal as well as material costs as
    the recycled resin was put to use. The improvements required no new
    equipment or capital costs; rather, the key was creating better
    operating procedures and improving employee accountability.

The International Council of Chemical Associations (ICCA) coordinates
the Responsible Care program, which originated in Canada in 1984 and is
practiced today under the oversight of 60 national and regional
associations around the world. Responsible Care companies operating in
the U.S. have a worker safety rate five times better than the U.S.
manufacturing sector as a whole, and three times better than the overall
business of chemistry.

In addition, 43 sites within Hexion’s global manufacturing network have
achieved ISO9001 certification (Quality Management System) and another
12 sites have achieved ISO 14001 certification (Environmental Management
System). The Company also has 7 sites that have earned OHSAS 18001
certification (Health and Safety Management System). In total, Hexion
sites have achieved 80 safety, quality and energy management
designations globally.

For more information on Hexion’s Responsible Care program, visit www.hexion.com.
For more information on the ACC and Responsible Care, visit www.americanchemistry.com/rc.

About the Company

Based in Columbus, Ohio, Hexion Inc. (formerly known as Momentive
Specialty Chemicals 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 www.hexion.com.

Contacts

Hexion Inc.
Investors and Media:
John Kompa, 614-225-2223
john.kompa@hexion.com