Hexion Inc. Signs Memorandum of Understanding with Kangde Composites Co., Ltd.

COLUMBUS, Ohio–(BUSINESS WIRE)–Hexion Inc. (“Hexion” or the “Company”) announced today that it has
signed a Memorandum of Understanding with Kangde Composites Co., Ltd.
(“KDC”) to collaborate in the development of high volume carbon fiber
production methods for use in the automotive and other appropriate
markets.

KDC has built a world-leading carbon-fiber-reinforced polymer (CFRP)
industrial value chain that includes carbon fiber, textile, stacking,
preforming, forming and post-treatment, while using a fully automated
production line in Langfang, Hebei, China. KDC also operates the KDX
Europe Composites Research and Development Center in Weyarn, Germany,
providing product development, process development, material testing,
process simulation, and advanced technology research.

Hexion has introduced many innovations in thermoset composite systems
suitable for mass production and covering various application fields and
process technologies. Hexion has focused on leveraging its thermoset
resin technology for the production of high-strength, weight-saving
composite parts in a wide range of automotive applications through its
portfolio of advanced epoxy and phenolic resins, curing agents and
additives.

“We are pleased to partner with KDC in advancing the industrialization
and mass production of composites,” said Francis Defoor, Hexion's
Automotive segment leader. “Hexion has more than 50 years of experience
in the composites industry and is committed to making significant
investments in support of CFRP development for large production volumes
in the automotive sector. Our expertise in epoxy chemistry as well as
our application and process know-how make us a leading development
partner for lightweight composite technology.”

Hexion is constantly adapting its composite resin portfolio to answer
manufacturers’ increasing need for strong yet lightweight alternatives
to metal, that can be produced at faster speeds. Hexion’s resin
technology can help manufacturers reduce vehicle weight and at the same
time, hasten production of high-performance composite components.

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 www.hexion.com.

Contacts

Hexion Inc.
Investors and Media:
John Kompa, 614-225-2223
[email protected]